Feb 24 2017: LSI Industries has acquired Atlas Lighting Products, an LED lighting manufacturer, in a “highly strategic” deal. LSI said that it was the biggest investment by the company to date.
LSI Industries will pay $97.5 million for all capital stocks in Atlas Lighting, and $96.9 million in cash; the remainder will be paid in stock warrants.
During fiscal 2016, Atlas recorded $56.5 million in revenue, and $8.8 million in income, after all adjustments made for private company expenses.
LSI portfolio will be broadened after gaining the products and intellectual assets of Atlas. This will provide access to new suppliers, leading to boost in sales and profits.
Dennis Wells, CEO of LSI said that the complementary product offerings of LSI and Atlas, together with the expected revenue and cost synergies will benefit the company. He added that the acquisition will help LSI gain profit beginning in fiscal 2018. It will also help LSI to achieve above-market rate revenue growth and improve gross and operating margins.
Initially, LSI would maintain separate brands for the two companies and distribution channels. However, there would be cross-selling opportunities.
Atlas, on the other hand, will utilize the sourcing channels in Asia throughout LSI’s existing businesses. These sourcing relationships, and additional cost savings that the company has identified, will benefit LSI.
While Atlas is a LED lighting company, LSI delivers complete systems across lighting, network and control, and signage/graphics applications. Both the companies have heavily invested in LED light sources.