February 21, 2024
Acuity Brands Gets Arize® out of Current
Acquisition of horticultural lighting products quietly finalized between two lighting leaders
In a notably understated manner, an acquisition transaction between two of North America's leading lighting companies, Acuity Brands and Current, quietly concluded weeks ago without any widespread marketing fanfare. This acquisition, announced in November 2023, involved the transfer of certain horticultural lighting products from Current to Acuity Brands and was finalized with minimal public attention in January. This strategic move is in line with Acuity Brands' expansion efforts, especially in the horticultural sector, following the 2022 launch of their Verjure™ horticultural lighting brand.
The acquisition specifically involved the Arize® line of horticultural lighting products, which has now been integrated as a product family into Acuity Brands' Verjure™ portfolio. This integration marks a deliberate expansion of Acuity's offerings in the horticultural lighting domain, aiming to cater to a broad spectrum of indoor plant cultivation solutions.
Inside Lighting has learned that the linear horticultural LED lamps from Current's Arize® line were explicitly excluded from the deal, indicating a consolidation mostly focused on luminaire product lines. The web pages of Arize® lamp products not acquired by Acuity Brands are no longer accessible on the Current website. We discovered an E26 screw base Arize® lamp on the Acuity Brands website, a rare occurrence for a lamp product from Acuity, especially one displaying a photo with the General Electric "meatball logo" imprint. The photo was presumably provided to Acuity Brands by Current as part of the asset transfer.
Transaction Implications
Despite the scale of the companies involved, with Acuity Brands standing as a $4 billion leader in the commercial and industrial lighting market in North America, the financial impact of this transaction has been described as non-material by both parties. Specific details on the deal were not disclosed.
This acquisition occurs against the backdrop of increasing competition within the horticultural lighting sector. Notably, the world’s largest lighting company, Signify, fortified its position through the $272 million acquisition of Texas-based Fluence in 2022, underscoring the intensifying race for dominance in this niche yet burgeoning market. The global horticultural lighting market, despite recent slowdowns, continues to represent a significant growth opportunity, projected to reach $1.8 billion in the coming years.
For Current, this deal signifies a strategic withdrawal from the horticultural lighting category. This move reflects a recalibration of focus, steering away from horticulture to concentrate on other core markets within the lighting industry.
