December 28, 2023
The Most Notable Lighting Acquisitions of 2023
Significant acquisitions this year have reshaped the competitive landscape of the C&I lighting industry
In the dynamic world of professional lighting, 2023 has emerged as a year marked by significant acquisitions, reshaping the industry landscape.
Leading players such as Signify and Acuity Brands have actively expanded their portfolios, while others like Current have strategically divested specific lines. This wave of consolidation has seen Cree Lighting finding a new home under different ownership, and LMPG continuing its impressive acquisition spree of architectural lighting brands. Notably, many of this year's acquisitions have been exclusively reported by Inside Lighting, highlighting the sector's intricate and often under-the-radar business maneuvers.
The acquisition of Universal Lighting Technologies (ULT) and Douglas Lighting Controls by Signify is notable, perhaps more for the sudden and unceremonious shutdown of parent company, Universal Douglas, than for the intellectual property assets acquired by the world's largest lighting company.
The assets of Universal Douglas:
Inside Lighting was the only media outlet to report details of the sale involving certain assets of the now-defunct Universal Lighting Technologies (ULT) and Douglas Lighting Controls, which were sold to Signify for what appears to be a bag of magic beans.
Douglas Lighting Controls
Signify has acquired key assets from Douglas Lighting Controls for $250,000 USD. This acquisition, part of a broader strategy, includes patents, trademarks, and product designs, with Signify additionally covering 50% of specific transaction costs up to $20,000.
The acquisition enriches Signify's portfolio in three main areas:
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Product Designs: Over 1,400 part numbers, including mechanical designs, datasheets, PCB layouts, and software, are now under Signify's domain. This allows for extensive access to Douglas's products and the right to their manufacture and sales.
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Patents: Ten patents focusing on lighting control technologies, such as occupancy sensors, were acquired. These were previously secured under lien by FGI WorldWide due to Douglas's bankruptcy.
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Trademarks: The rights to the "Douglas Lighting Controls" brand name are now with Signify, providing potential brand leverage.
Universal Lighting Technologies (ULT)
Signify similarly acquired select intellectual property assets from Universal Lighting Technologies (ULT), a subsidiary of the now-defunct Universal Douglas. This acquisition, confirmed by Signify, comes in the wake of ULT's abrupt shutdown in March 2023 and runs parallel to the August acquisition of specific assets from Douglas Lighting Controls.
The acquired assets from ULT encompass intellectual property, including product designs, patents, and trade names. However, the financial terms of this agreement have not been disclosed. This acquisition notably enhances Signify's intellectual property portfolio, strengthening its competitive position in the lighting industry.
Signify's Advance brand, a long-standing competitor of ULT, may particularly benefit from this acquisition. The assets include patents and product designs in key product categories such as LED drivers, LED modules, and fluorescent ballasts, areas where both Signify and ULT have historically been strong.
Ideal Industries Sells Cree Lighting
IDEAL INDUSTRIES, Inc. has completed the sale of Cree Lighting to CLNA Holdings, LLC, part of the Advanced Lighting Technologies (ADLT) group. ADLT, a veteran in the lighting industry for over 25 years, specializes in energy-efficient lighting fixtures and materials.
The financial details of this private transaction remain undisclosed. IDEAL INDUSTRIES initially acquired Cree Lighting from Cree Inc. in March 2019, about 4½ years ago.
Cree Lighting's portfolio includes LED lighting fixtures, lamps, and intelligent lighting control solutions, catering to commercial, industrial, and consumer markets. The company's outdoor lighting lineage includes notable acquisitions like Ruud Lighting and BetaLED, which Cree Inc. bought for $525 million in 2011.
LMPG Continues its Acquisition Spree, Adds ALW & Vode
ALW
LMPG acquired California-based Architectural Lighting Works (ALW). The ALW brand, known for its rich history, has recently expanded its indoor and outdoor architectural lighting product lines, much to the delight of North American lighting specifiers. Lighting People with long-standing experience in architectural lighting might remember that ALW acquired Neidhardt in 2017.
VODE Lighting
LMPG also acquired Vode Lighting, a California-based architectural lighting brand. This acquisition represents LMPG's fourth lighting company purchase in the last two years, emphasizing its strategic expansion in the architectural lighting industry.
As part of this acquisition, Ann Schiffers has been appointed as the new CEO of Vode Lighting. Meanwhile, Vode's co-founders, Tom Wharton, Scott Yu, and George Mieling, will transition to strategic executive roles within the company.
Signify’s Cooper Lighting Solutions Acquired ILC
In March, Signify acquired Intelligent Lighting Controls (ILC), a Minnesota-based lighting controls maker. This acquisition, completed by Cooper Lighting Solutions, a U.S. subsidiary of Signify, added ILC to its expanding lighting controls platform. ILC, known for its array of wired commercial lighting controls products such as control panels, integrated controls, and wallstations, was integrated into Cooper Lighting’s portfolio.
The acquisition of ILC augmented Cooper Lighting Solutions' building systems offerings, which already included platforms like Wavelinx, Trellix, and Greengate. This strategic move enhanced Cooper Lighting's range of lighting control solutions, bolstering its position in the market.
Inside Lighting provided an excruciating analysis of the existing agent network overlap between Cooper Lighting and ILC agents before the acquisition.
Acuity Brands: Two Niche Acquisitions
Distech & Chill: KE2 Therm Adds to Intelligent Spaces Group (ISG) Portfolio
Acuity Brands completed the acquisition of KE2 Therm Solutions, Inc., on May 15, 2023, utilizing cash on hand. This strategic move is in line with the company's goal to expand its Intelligent Spaces Group (ISG) segment. KE2 Therm is recognized for its intelligent refrigeration control solutions that enhance safety, efficiency, reliability, and offer cost savings for customers.
The costs related to this acquisition were considered insignificant to Acuity Brands' financial statements. As of August 31, 2023, the preliminary goodwill allocated to the ISG segment due to this acquisition was estimated at $15.0 million. This goodwill is not anticipated to be tax-deductible and reflects the expected benefits of the expanded technology portfolio, the skilled workforce of KE2 Therm, and potential operational synergies.
Acuity Brands to Acquire Horticultural Lighting Business from Current
Acuity Brands is set to acquire the Arize® product line from Current Lighting Solutions, enhancing its sprouting interest in the horticulture lighting market. This follows the introduction of Acuity Brands' Verjure™ brand in 2022, a professional-grade horticulture LED lighting platform of lighting solutions.
The transaction is anticipated to close in early 2024, further deepening Acuity's offerings in this sector, while signaling the end of Current’s pursuit of horticultural lighting business.
Hubbell Announces Sale of Progress Lighting to P.E. Firm
Hubbell Incorporated last week announced the sale of its Residential Lighting business, primarily comprising Progress Lighting, to Kingswood Capital Management, LP, a private equity firm based in Los Angeles. The transaction, an all-cash deal valued at $131 million, is subject to customary adjustments and regulatory approvals, with an expected closure in the first quarter of 2024.
Progress Lighting, a significant player in the residential lighting sector, is anticipated to generate around $190 million in sales for 2023. This divestiture follows Hubbell's sale of its commercial and industrial business, Hubbell Lighting, to Current over two years ago. This latest sale marks Hubbell's continued strategic pivot away from lighting, focusing more on its core electrical business segments. Hubbell, a global leader in electrical and utility solutions headquartered in Shelton, Connecticut, reported $4.9 billion in revenues for 2022.
Inventronics Acquires Digital Systems Business from ams Osram
In April, Inventronics completed the acquisition of the European and Asian Digital Systems business from ams OSRAM. Announced in June 2022, this acquisition includes power supplies, light modules, software, and connectable components developed by ams OSRAM's Europe and Asia Digital Systems business. The terms of the deal were not disclosed.
This move is separate from Acuity Brands' 2021 acquisition of ams OSRAM's North American Digital Systems business.
Achtung! Hess GmbH Acquired by Ragni Group
In an exclusive report by Inside Lighting, Experience Brands has sold its German subsidiary, Hess GmbH Licht + Form, to the Ragni Group, a French outdoor lighting specialist. This acquisition primarily affects European brands and their market strategies.
Hess GmbH, a renowned German manufacturer of architectural outdoor lighting and site furnishings, now joins the Ragni Group. The sale transfers all of Hess GmbH's global business activities, except for those in the American markets (USA, Canada, and Latin America), which continue under HessAmerica, a part of Experience Brands Group.
Included in the transaction is the Vulkan brand, known for LED street and public space lighting since 1898. This strategic acquisition reshapes the architectural outdoor lighting landscape, particularly in European markets.
Saylite Acquires Vantage Lighting
Saylite, previously known as Texas Fluorescents, has acquired Vantage Lighting, a Rhode Island-based manufacturer of downlights, cylinders, and high bays. This acquisition, under the umbrella of CORE Industrial Partners, adds a range of point-source luminaires to Saylite's expanding product line, which includes the Architectural Flair family of products.
Rhode Island based Vantage Lighting is recognized for serving various commercial end markets. They offer a full line of American-made luminaires for both new construction and remodels.
Digital Lumens Quietly Sold to Singapore's Siteworx, Shifts to SAAS Strategy
In yet another exclusive report by Inside Lighting, Boston-based Digital Lumens was sold to Singapore's Siteworx Software, PTE Ltd. This acquisition, previously under Skyview Capital, marks a strategic shift away from Digital Lumens' turnkey approach to focusing on Software as a Service (SAAS).
Following the sale, a group of veteran Digital Lumens employees have taken leadership roles at SiteWorx Software USA, indicating a significant restructuring and change in ownership led by Guy Peckham's investment group.
Nemo Lighting Acquires Majority Stake in Reggiani
Nemo Lighting, an Italian provider of high-end decorative and architectural lighting, has acquired a majority stake in Reggiani Illuminazione, another Italian architectural lighting firm. The terms of the deal were not disclosed.
This acquisition aligns with Nemo's owner, Federico Palazzari's vision of creating a leading Italian industrial lighting hub, a vision that began with the investment in Ilti Luce in 2020, now known as Nemo Studio.
Bukas Lighting Group Acquires Custom Lighting Maker
Bukas Lighting Group (BLG), based in Illinois, has announced its acquisition of iWorks, a California-based custom lighting and architectural elements manufacturer with over thirty years of experience. The acquisition includes iWorks divisions: Light Annex, DAS Decorative Architectural Screens, and Sirmos luxury interior fixtures. This strategic move bolsters BLG's position in the architectural lighting sector and expands its market presence in upscale hospitality properties.
Post-acquisition, BLG's brand portfolio now encompasses:
- FC Lighting
- SSL Solid State Luminaires
- Paramount Industrial Lighting
- SPI Lighting
- iWorks, including Light Annex, DAS, and Sirmos
