January 5, 2022
Orion Acquires Lighting Management Company
The $117 million lighting company expands its Services business unit with acquisition
MANITOWOC, WI – Wisconsin-based Orion Energy Systems has acquired Wisconsin-based lighting maintenance company, Stay-Lite Lighting.
Stay-Lite was purchased for a cash purchase price of $3.7 million. In addition, depending upon the relative gross profit growth of Stay-Lite Lighting’s legacy business over the next two calendar years, Orion could pay up to an additional $700,000 in earn-out related purchase price.
Stay-Lite Lighting provides services such as indoor and outdoor lighting repairs, sign repairs, and manufacturer warranty support, among other services. According to its website, the company services customers throughout the country with four locations and eleven satellite facilities. The four locations are located in Wisconsin (2), Michigan and Ohio. Stay-Lite Lighting has annual revenues of approximately $9 million and, in 2020, the company reported having 59 employees.
Orion is best known for being a turnkey provider of energy efficient commercial and industrial lighting products. In the fiscal year ended March 2021, the company reported $87.7 million in product revenue and $29.2 million in service revenue. The company reportedly derives a large portion of its current revenues from installations deployed across the North American store locations of a major home improvement retailer.
The acquisition will enable Orion to bolster its service capabilities to its customer base.
Below is the announcement from Orion:
NOTE: This article was updated at 12:37 EST to include the purchase price and terms.
Orion Energy Systems Acquires Lighting and Electrical Maintenance Service Provider, Stay-Lite Lighting
MANITOWOC, Wis., Jan. 05, 2022 (GLOBE NEWSWIRE) -- Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a provider of energy-efficient LED lighting, control and IoT systems, including turnkey project implementation, program management and system maintenance, today announced the acquisition of Stay-Lite Lighting, a nationwide lighting and electrical maintenance service provider.
The acquisition accelerates the growth of the Orion Maintenance Services business, which provides lighting and electrical services to customers.
“The acquisition of Stay-Lite Lighting into the Orion portfolio adds high-profile retail customers, self-performing capabilities in 15 states and a nationwide network of service coverage,” stated Mike Altschaefl, Orion CEO and Board Chair. “This will substantially benefit our current and future customer base as it immediately expands our service and maintenance network, capabilities and offering while adding 50 years of lighting industry experience and technical knowledge. This is a timely addition of service capabilities as we continue to expand our maintenance services with our largest retail customers and provides additional resources we can leverage for future growth.”
An active member of the International Association of Lighting Management Companies (NALMCO), Stay-Lite Lighting provides self-performing services such as indoor and outdoor lighting repairs, sign repairs, and manufacturer warranty support, among other services.
“We have been significantly expanding our lighting maintenance business with our largest retail customers, and this acquisition will allow us to continue to grow our recurring revenues and more quickly support the needs of our customers,” stated Altschaefl. “We are also very excited about the talented people that will be joining us, including their experience, customer relationships and deep knowledge of the lighting maintenance market.”
Kirk Tuson, Stay-Lite Lighting’s former owner commented, “There is an excellent cultural fit between our two companies. By combining our resources, we will be able to expand the high-quality, dependable customer service for which we have been known for the past 50 years.”
Stay-Lite Lighting will operate as Stay-Lite, an Orion Energy Systems business. Stay-Lite Lighting has annual revenues of approximately $9 million.
Bridgewood Advisors acted as advisors to Orion and Taureau Group acted as advisors to Stay-Lite Lighting.
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