OTC: ILUS, ILUS International (Ilustrato Pictures International Inc), Completes the Acquisition of Tennessee-based Bull Head Products Incorporated
NEW YORK, NY, Dec. 27, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- ILUS International Inc (OTC: ILUS) is a Mergers and Acquisitions company focused on acquiring and developing public safety technology-based companies across the globe. Leading up to the completion of this acquisition, ILUS had previously completed three acquisitions in the first two quarters of 2021, and since then the company has agreed and signed pre-contract agreements for a further four acquisitions which it is in the process of completing. Of the four agreed acquisitions, ILUS has now completed the acquisition of Bull Head Products Inc and will take over the ownership and operation of the business with immediate effect.
Bull Head Products is a specialist aluminium truck bed manufacturer and vehicle converter with customers across the United States in multiple sectors, including wildland firefighting and rapid response fire and rescue. ILUS has agreed the acquisition of Bull Head Products Inc for an undisclosed cash amount which is linked to performance clauses and a small amount of restricted shares. The company has acquired Bull Head Products primarily due to its strategic importance for the manufacturing of ILUS rapid response vehicles, vehicle conversions and commercial electric utility vehicle assembly. In terms of revenue and corresponding cost, the acquisition is the smallest of ILUS’ current round of US acquisitions, generating just over $1 million dollars of profitable annual revenue. As with all current and upcoming ILUS acquisitions, Bull Head Products holds extraordinary growth potential. Since its involvement with ILUS, the company has already seen sales orders increase and now has several significant vehicle contracts in its sales pipeline, including one deal of over $1.2 million. For this opportunity, Bull Head Products is currently manufacturing the first vehicle for the customer as a Proof of Concept to gain final approval for the larger manufacturing contract.
ILUS will be using Bull Head Products to manufacture FireBug’s rapid response firefighting and rescue vehicles and completing vehicle conversions for North American vehicle contracts. Bull Head Products will also assemble ILUS’ E-Raptor range of commercial electric utility vehicles which are to be manufactured in South-Eastern Europe at the manufacturing plant which ILUS is in the final stages of acquiring with planned production to begin in February 2022. Bull Head Products, unlike its competitors, uses 100% aluminium construction and does not use steel subframes which are prone to rust. Continuing this innovation, ILUS will commence the manufacturing of its lightweight plastic vehicle bodies and tanks at Bull Head Products. Plastic vehicle bodies and tanks are widely used across Europe and are not known to be manufactured in the US yet, despite being the future of rapid emergency response vehicle technology. Bull Head Products currently manufactures a wide range of truck beds, including brush truck beds for wildfire fighting. Instead of diluting the wildfire truck range on the company’s website among the full range of its products, ILUS will be establishing a separate website for the wildfire fighting vehicles. This separate website will include the current brush trucks and add rapid response vehicle solutions from FireBug, as well as links to supplementary products and solutions offered by other ILUS acquisitions.
The products from both FireBug and the in-progress Georgia acquisition will be sold via Bull Head Products. Simultaneously, the products manufactured by Bull Head Products will allow the Georgian distributor, once the attorneys have completed contracts, to sell Bull Head Products’ firefighting vehicles. The Georgian distributor employs 6 sales personnel who are all former or retained firefighters. Their experienced sales team has previously not had access to a range of firefighting vehicles which they could sell to their customer base. They will therefore be able to leverage their existing relationships to drive increased sales of FireBug’s firefighting vehicles which are manufactured at Bull Head Products. Furthermore, the firefighting pumps and equipment manufactured by Precision Powered Products, which ILUS has also agreed the acquisition of, will be sold by Bull Head Products to provide a complete firefighting vehicle solution. These pumps and equipment will also be sold by the Georgian distributor. This illustrates the huge cross-selling and up-selling opportunity that exists for Bull Head Products through the cross-pollination of both customers and products. The ILUS strategy has always been for current and future acquisitions to benefit each other and consequently, the growth trajectory of ILUS. The company is delivering on its triple pronged acquisition strategy for the acquisition of manufacturing capability, distribution capability and technology enhancements in the US.
Bull Head Products Inc was established in 2004 and its truck beds are widely renowned as the industry benchmark for quality, appearance, and durability. Bull Head Products currently operates from its 8,000 square foot facility in Kodak, Tennessee. ILUS is already looking at options for a 15,000+ square foot facility in the Knoxville area due to incoming contracts and the current facility nearing its maximum output. In the short term, ILUS plans to increase current output from 12 vehicles per month with a lead time of 16 weeks, to 36 vehicles per month at a lead time of 6-8 weeks. This is necessary to meet the requirements of customers which Bull Head Products and ILUS are in discussions with. ILUS will be retaining all existing staff whilst employing a new Sales Manager, Vehicle Designer, Production/Factory Floor Manager and 6 additional Factory Floor Workers. The Bull Head Products website which contributes towards nearly 50% of all nationwide sales, is already in the process of being completely updated. Several additional upgrades and improvements are planned for the business in the short term. ILUS expects annual revenue from Bull Head Products to comfortably exceed $5 million in 2022.
Although Bull Head Products currently services customers across the US and has supplied customers internationally, ILUS is unravelling plans to promote the current products to truck dealers such as Ford, RAM, GMC, and Toyota where there has been interest in the past, but not enough manufacturing capacity to fulfil additional stock orders. ILUS is also working with Bull Head Products to evaluate several distribution inquiries from around the US which could not move forward due to order books being full and long lead times. ILUS will be appointing local distributors for Bull Head Products throughout the US.
ILUS Managing Director, John-Paul Backwell, said the following: “This is our first completed acquisition in the US, and it represents an important milestone for us in terms of strategy and delivery. ILUS is now officially in the United States, manufacturing and selling its own technology with this being the first of so many more completed acquisitions to come in North America. When completing an acquisition, we are often conservative with our forecasted projections, but we know that when we get the momentum from the cross-pollination of customers and products, the nationwide local distribution and automotive dealers, this business will grow exponentially more than what has been projected. It might be the smallest acquisition in terms of revenue now, but it’s the one we are most excited about in terms of growth potential and for the wider adoption of rapid response vehicles and technology in the US emergency response industry.”
Nick Link, CEO of ILUS, commented: “It is exciting to close this acquisition just as we are also about to close a very strong quarter and draw the curtains on a year in which so much progress has been made. We expect there is still more to come from us this year as we head into a very exciting January and new year for ILUS and its Shareholders.”
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