• Lighting India
  • May 16, 2017

LSI Industries acquires Atlas Lighting Products

 LSI Industries Inc.  has completed the acquisition of all the capital stock of Atlas Lighting Products, Inc., a Burlington, N.C. manufacturer of high-quality LED lighting products sold into the electrical distribution market. For the fiscal year ended December 25, 2016, Atlas' revenues were $56.5 million, and operating income was $8.8 million after adding back adjustments of private company expenses estimated to be $3.6 million. Similarly, adjusted EBITDA is estimated to have been approximately $9.7 million. Net of cash, Atlas' balance sheet was debt-free at December 25, 2016. Founded in 1992, Atlas has operated as an S Corporation since its formation.

  The terms of the agreement include a cash payment of $96.9 million, plus 200,000 five-year warrants to purchase LSI's common stock at an exercise price of $9.95, for a total consideration of $97.5 million. Funding will be provided by a combination of cash on hand and $66 million from a new $100 million commercial bank facility provided by PNC Bank.

  Dennis W. Wells, Chief Executive Officer and President, said, “I am very excited to announce the acquisition of Atlas Lighting Products. This highly strategic acquisition, the largest in LSI's history, will immediately broaden our lighting product offering, expand our sourcing capabilities, improve our profit margins, and provide significant revenue and cost synergies.”