July 28, 2023
Nemo Lighting Acquires Majority Stake in Reggiani
Two Italian lighting companies join forces, targeting $66 million in global revenue
Nemo Lighting, an Italian maker of high-end decorative and architectural lighting, has acquired a majority stake in Reggiani Illuminazione, the Italian architectural lighting company. Terms of the deal were not disclosed.
The company announcement explained that Nemo's owner, Federico Palazzari, has been aspiring to create a leading Italian industrial lighting hub. This ambition was fueled in 2020 by investing in Ilti Luce, which has since become Nemo Studio. According to Palazzari, the acquisition of Reggiani is poised to inject fresh competencies into the group and cultivate talent. With the addition of Reggiani, the group expects to establish significant commercial synergies and expand the overall opportunities.
The Reggiani family will continue to play a role in the company's management, supporting Palazzari, who will be taking over as the managing director of the group. The expanded group is now more robust economically, with a projected revenue target of approximately 60 million euros ($66 million USD). The group has grown to three production plants, four international offices, and nearly 300 global employees.
Nemo and Reggiani will continue operating as separate entities, preserving their respective partnerships. The cooperation and synergies at the production level will reinforce their global competitive positioning, according to Matteo Reggiani. This arrangement will enable a structured commercial presence in Italy, France, the United Kingdom, the United States, China, and the Middle East, and a distribution network spanning over 80 countries.
North America’s recent history with Reggiani
Reggiani faced criticism last year in the U.S. when Reggiani Lighting USA, Inc., a subsidiary, abruptly ceased communication and abandoned projects before filing for bankruptcy. There were reports of specifier scambling for product substitutions, agents being owed large unpaid commissions and concerns about prepaid lighting orders that may never be fulfilled. The fallout led to speculation about the future of Reggiani's North American presence and how the market would or would not embrace the brand moving forward.
Reggiani's headquarters, after weeks of silence, eventually disclosed the decision to close the U.S. site due to the pandemic's financial impacts and the slowing market. Despite this setback, the parent company maintained that Reggiani's global operations and services remained unaffected. The company affirmed that it sought to deliver lighting solutions to more than 70 countries via its Italian headquarters, offices in France, UK, Russia, and China, and its network of trusted partners.
Nemo has been seemingly growing its US presence in recent years and this new partnership may cause the Nemo and Reggiani brands to combine resources to better promote and support the brands in North America.
