FOS Capital Limited (ASX: FOS): ATS Acquisition and Strategic Expansion - A Lighting Business on the ASX.
- Noel Ong
- Jul 2
- 7 min read
Announcements:
FOS Capital Limited (ASX: FOS) is a founder-led Australian manufacturer and distributor of commercial, industrial, and architectural lighting solutions. Since listing on the ASX in June 2021, the company has demonstrated consistent growth, underpinned by a clear acquisition strategy and operational execution.
FOS Capital at a Glance
ASX Code: FOS
Placement Price: $0.30/share
Funds Raised: A$3.7 million
Sector: Industrial / Infrastructure Lighting
Market Position: Founder-led manufacturer with acquisition-driven growth model
Recent Expansion: Aldridge Traffic Systems acquisition
Transaction Date: 11 June 2025
The FOS Growth Strategy -Lighting up the World.
FOS operates in highly fragmented markets, with current Australian market share of 5% and a medium-term goal of 15%.
Houses 17 owned brands across 2 manufacturing sites in Brisbane and Sydney.
Since its 2021 ASX listing:
Annual revenue growth: 35%
Annual EBITDA growth: 29%
Maintained consistent profitability
The ATS acquisition builds on the momentum from recent transactions such as KLIK Systems, which led to operational consolidation and margin improvements.
Transaction Overview: ATS Brings Strategic Depth
FOS Lighting Pty Ltd (a subsidiary of FOS Capital) to acquire the street lighting business assets of Aldridge Traffic Systems Pty Ltd (ATS) from ASX-listed Traffic Technologies Ltd (ASX: TTI, in Administration).
Total acquisition value: $3.1 million, comprising:
$0.9M in plant and equipment
$0.5M in inventory
$1.7M in intellectual property
Also, acquiring non-core brands (Deneefe, Sunny Signs, L&M, and QTC), which will be divested or shut down.
Expected proceeds from divestment: $0.5M–$1.0M, to support working capital and ATS revitalisation.
Completion date expected: On or before 20 June 2025.
Strategic Rationale: Expanding Scale in a Fragmented Market
FOS Capital has executed six acquisitions since 2019, and the addition of ATS fits squarely within its expansion model:
Enhances presence in Australia’s road lighting and smart transport space
Complements existing Eclatec product range (P-Category streetlights made in Brisbane)
Expands FOS’s operating leverage, market access, and alignment with infrastructure spending.
Figure 1: Eclatec Projects around the world (source: Eclatec)
ATS’s Business at a Glance:
Over 60 years in the road lighting industry
FY24 revenue: $6 million
Specialises in:
o V-Category (streetlights for use on main roads), P-Category (streetlights for use on minor roads & pathways), energy-efficient LED luminaires
o Solar-powered off-grid lighting
o Intelligent Transport Systems (ITS)
Owns the proprietary Traffic SmartCity Technology (TST) platform with recurring IoT-linked revenue streams
Traffic’s SmartCity Technology (TST) brings together the functionality of todays modern cities, segmented into 4 fundamental categories across one platform, giving cities of today the necessary platform and sensors to use urban informatics and technology to improve the efficiency of services across all facilities, including; Saving Energy, Reducing Carbon Emissions, Protecting Environment and Reducing Costs.
TST monitoring products and CAMS (Cloud Asset Management Software) enable authorities to control real-time management of city assets, monitor movement and deliver city security. Whilst giving citizens accurate information on anything from travel delays and parking, to air quality and weather.
ATS provides V-Category and P-Category energy-efficient LED lighting solutions, along with a unique SmartCity platform that can create ongoing revenue via IoT-connected devices. With over 60 years of experience in the field, ATS is part of an industry characterized by high entry barriers due to regulatory product approvals, which restrict competition and provide long-term benefits for seasoned operators such as FOS.
Financial Details: Raising and Deployment of Capital
FOS Capital raised A$3.7 million via a single-tranche placement at $0.30 per share.
The placement was well-supported by both institutional and sophisticated investors.
Offer price pricing:
3.2% discount to last close (A$0.31 on 6 June 2025).
6.0% discount to 5-day VWAP (A$0.32).
Approximately 12.3 million new shares to be issued.
Shares issued under ASX Listing Rules 7.1 (6.95M shares) and 7.1A (5.38M shares).
Use of funds:
A$3.1 million for the acquisition of Aldridge Traffic Systems (plant, inventory, IP).
A$0.6 million for working capital and placement costs.
Lead Manager: Shaw and Partners acted as Sole Lead Manager and Bookrunner.
Settlement and allotment are subject to conditions precedent and expected by 20–23 June 2025.
Global Positioning and Tariff Insights
FOS recently commented on the new 10% US tariff on Australian goods:
FOS exported A$2M to the US in 2024—around 6% of total sales.
Its premium-grade lighting products are not highly price-sensitive.
FOS stands to benefit competitively as EU (20%), UK (10%), and Indian (26%) competitors face equal or greater tariffs.
The absence of major US domestic producers in this niche adds to FOS’s advantage.
Potential support from Australian government’s $1B export loan facility could also boost newer export markets (Italy, UK, UAE).
Leadership That Delivers
Con Scrinis, Managing Director of FOS, brings direct industry insight, having previously served as Managing Director of Traffic Technologies (ATS’s parent). His experience and strategic leadership underpin FOS’s acquisition strategy and post-acquisition optimisation focus.
According to Mr Scrinis:
“The acquisition of Aldridge Traffic Systems further expands our presence in the Australian lighting solutions market. This is an attractively priced asset to which we can add significant value, further building on our track record of recent acquisitions”.
Samso Concluding Comments
In the broader context of what FOS Capital is building, this acquisition of Aldridge Traffic Systems feels less like an isolated event and more like the next step in the roadmap. The company has previously demonstrated a consistent ability to identify, acquire, and integrate assets that seem to add scale and operational value. With ATS, the immediate benefit is domain depth in road lighting and smart transport systems—two areas that align neatly with infrastructure tailwinds and government investment cycles.
With Con Scrinis at the helm, having formerly led Traffic Technologies, Scrinis is arguably well-placed to manage the turnaround and integration of ATS, a business that has seen better days but still holds strong fundamentals. The proposition isn’t just cost recovery or scale—it’s about tapping into a sector that is technologically evolving and increasingly central to how cities manage energy efficiency and mobility.
Having someone at the helm who understands this business is crucial. As I did my research into the company's business, I must admit that I did not think of this business as an ASX-listed company. After all, if it makes money, why not?
For investors, this is an opportunity to potentially get involved with a smaller-cap Australian company building critical mass. It’s not a loud story, but most good businesses are not, but FOS can be a persistent one. If FOS can deliver on its promise to revitalise ATS and continue building momentum through strategic M&A and organic growth, it may emerge as a notable consolidator in a sector that has historically lacked a unifying player.
As always, this is not a suggestion to jump in—rather, it’s a nudge to keep FOS on your radar. Follow their integration progress, their ability to improve ATS’s earnings, and whether future deals follow the same disciplined, accretive approach. That’s where the longer-term value story might quietly take shape.
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