Industry News

LSI Industries Acquires Atlas Lighting Products

The companies expect to capitalize on cross-selling opportunities through LSI Industries acquisition of Atlas Lighting

United States: LSI Industries has announced the acquisition of LED-lighting manufacturer Atlas Lighting Products for cash and stock warrants. The deal was valued at around USD100 million and will be funded through cash on hand and a USD100 million commercial credit arrangement with PNC Bank.

Cincinnati, OH-based LSI Industries, is paying USD97.5 million for all the capital stock in Atlas Lighting, USD96.9 million in cash and the remainder in stock warrants. LSI said Atlas recorded USD56.5 million in revenue during fiscal 2016 and USD8.8 million in income, after adjustments for private company expenses.

TechSci Research depicts that with this acquisition, LSI Industries would be gaining the products and intellectual assets of Atlas Lighting. This is also expected to immediately broaden the LSI portfolio, provide access to new suppliers, and ultimately boost sales and profits. LSI, has been aggressive in its expansion on the sales and manufacturing fronts as last year the company added significantly to its regionally-organized sales force and has won deals with major brands including The Kroger Company.

According to a recent report published by TechSci Research, United States LED Lighting Market Forecast & Opportunities, 2020”, the US LED lighting market is expected to reach an estimated USD5.2 billion in 2015. General lighting segment that includes demand from residential, offices, hospitality and commercial spaces accounts for the largest share in the country’s LED lighting market. Other major end user segments of LED lighting market include automotive and backlighting. Recovering construction industry in the US and growing demand for LED in general lighting and automobile sector is expected to boost the demand for LED lighting products in the countryover the next five years.