December 21, 2023
Hubbell Announces Sale of Progress Lighting to P.E. Firm
Above: Progress Lighting Saucedo Collection Five-Light Matte Black Modern Pendant
Hubbell to shed $190 million residential lighting business in all-cash transaction
Hubbell Incorporated, has announced the sale of its Residential Lighting business, which primarily includes Progress Lighting, to Los Angeles-based private investment firm Kingswood Capital Management, LP. The deal, valued at $131 million in cash, is subject to standard adjustments and regulatory approvals, and is expected to close in the first quarter of 2024.
Progress Lighting, a prominent name in residential lighting, is projected to generate approximately $190 million in sales for 2023. The divestiture comes more than two years after Hubbell announced the sale of its commercial and industrial business, Hubbell Lighting, to Current. This move reflects the company's strategic shift from lighting to focusing on its core electrical business areas. Hubbell, a global leader in utility and electrical solutions with headquarters in Shelton, Connecticut, reported revenues of $4.9 billion in 2022.
Kingswood Capital's Expanding Portfolio
Kingswood Capital Management has made notable strides in 2023, marking four acquisitions. The firm's diverse portfolio spans various industries, including energy, retail, outdoor equipment, contact center solutions, and now, residential lighting. Some of its key holdings include World Market, Mountain Equipment Company, and The Save Mart Companies, among others.
This acquisition by Kingswood signifies a strategic enhancement of its investment portfolio, diversifying into the residential lighting sector. Progress Lighting expands Kingswood presence in the home and lifestyle market. The deal further signifies a shift in Hubbell's business focus, streamlining its operations to concentrate on its primary utility and electrical manufacturing capabilities.
Other portfolio companies of Kingswood Capital Management:
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Covenant Testing Technologies: Offers flowback, production and sand management, and pressure control equipment rentals and services in key shale regions like the Permian Basin, DJ Basin, Eagle Ford Shale, and Haynesville Shale, across Texas, New Mexico, Colorado, and Louisiana.
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G Fuel: An energy drink brand catering to the gamer community, known for its sugar-free product lineup including powdered Energy Formula, ready-to-drink cans, and powdered Hydration Formula.
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Lind Marine: Specializes in dredging, barge and tug services primarily in the San Francisco Bay and Delta, and the Sacramento and San Joaquin Rivers. It focuses on bulk materials handling for construction and agriculture, as well as dredging and marine environmental remediation.
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Mountain Equipment Company: Canada's leading retailer for outdoor gear and advice, with 21 experiential retail stores and a complementary digital business.
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Obsession Holdings: A major national retailer of authentic designer and proprietary fragrances and accessories, operating over 215 stores under The Fragrance Outlet and Perfumania brands, along with ecommerce websites.
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The Save Mart Companies: A Californian grocer with around 200 stores including Save Mart, Lucky California, and FoodMaxx, mainly in the California Central Valley and Northern Nevada.
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Senture: Provides multi-channel contact center solutions to government and commercial customers.
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Support Services Group: A global contact center solutions company operating from over 20 locations in ten countries, with a workforce of over 10,000 employees.
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Turbo Wholesale Tires: Designs, supplies, and wholesales tires, including proprietary brands like Lexani, Lionheart, and RBP.
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Versar: A global project management company offering technical and management support in environmental, engineering, and construction to government agencies.
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World Market: A national specialty retailer offering home furniture, décor, and various international products, with a focus on unique artisan goods and international food favorites
