November 27, 2023
Acuity Brands to Acquire Horticultural Brand From Current
Deal between rivals enhances Acuity's portfolio. Current exits horticultural lighting sector.
Acuity Brands, North America's largest lighting company, has agreed to acquire the Arize® family of horticulture lighting products from rival Current Lighting Solutions, a $1 billion competitor in commercial lighting. This acquisition, coupled with a distribution agreement with Hort Americas, LLC, marks a substantial expansion in Acuity Brands' product offerings in the controlled environment agriculture market. Terms of the deal were not disclosed.
In 2022, Acuity Brands introduced the Verjure™ brand, a professional-grade horticulture LED lighting solution. This series, developed through extensive plant-based academic research, supports all stages of plant growth in various indoor settings such as warehouses, greenhouses, and vertical racks. The acquisition of the Arize® product line from Current Lighting Solutions adds depth to Acuity’s offering, enhancing the company’s position in the horticulture lighting market.
Acuity Brands and Hort Americas Partnership
In addition to the Arize product line acquisition, Acuity Brands reached an agreement with Hort Americas for it to remain as the exclusive distributor of these horticulture lighting products throughout the U.S., Canada, and Mexico.
Tony Gineris, VP & General Manager of Industrial and Outdoor at Acuity Brands Lighting and Lighting Controls, emphasized the strategic nature of these agreements. He stated that incorporating high-powered, greenhouse-focused luminaires into Acuity Brands' portfolio will allow the company to expand its offerings in the fast-growing controlled environment agriculture market. Gineris also highlighted the synergy between Acuity Brands' lighting and controls expertise and Hort Americas' established presence in the commercial greenhouse space.
Competitive dynamics:
This development enhances competition in the horticulture lighting sector. Acuity Brands' rival, Signify, acquired Austin, Texas-based Fluence in 2022 for $272 million. The acquisition aimed to strengthen Signify's horticultural lighting business, especially in North America. Before the acquisition, Fluence reported revenues of $141 million. The global horticultural lighting market was projected to reach $1.8 billion by 2024, but recent quarterly earnings reports from the company have indicated a slowdown in the sector.
Category Exit for Current: The decision to spin off Arize marks Current's exit from the horticultural lighting category. A company spokesperson shared, “Horticulture will not be a strategic focus for us moving forward as we have reached an agreement to transfer the technology to Acuity. Our focus will be on continued efforts to merge the GE Current, a Daintree Company and Hubbell Lighting businesses, systems and portfolios, offering first in class service to our customers with a laser focus in the C&I, Roadway, Distribution and Specialty channels across luminaires and controls.”
Acuity Brands’ transaction with Current is expected to be finalized by the end of January 2024. Post-acquisition, the Arize products will join Acuity Brands' Verjure™ series of horticulture lighting products. The agreement with Hort Americas will be activated upon the closure of the transaction with Current.
This acquisition positions Acuity Brands as a stronger player in the North American horticulture lighting market.
