February 9, 2024
Hubbell Completes Sale of Progress Lighting
Two years post-Hubbell Lighting sale, Hubbell exits lighting sector with Progress Lighting divestiture
Hubbell Incorporated, a global provider of utility and electrical solutions, has completed its decisive exit from the lighting sector. Following the sale of its commercial and industrial segment, Hubbell Lighting, to GE Current in February 2022, the company has now divested its last significant lighting entity, residential brand Progress Lighting, to Kingswood Capital Management, a private equity firm based in California.
The sale of Progress Lighting, first announced in December 2023, concludes Hubbell's strategy to largely exit the lighting industry. Hubbell continues to retain ownership of Chalmit Lighting, a smaller, Scotland-based, niche brand that specializes in LED solutions for hazardous areas.
Progress Lighting's 2023 revenues reached $187.1 million. For context, revenues of Hubbell Lighting were $515 million in 2020, the year before its announced sale.
Details of the Transaction
Progress Lighting, known for its wide range of indoor and outdoor lighting products, caters to the residential market with decorative, recessed, and energy-efficient lighting solutions. The sale, valued at a cash purchase price of $131 million subject to customary adjustments, represents a strategic move by Hubbell to streamline its operations and focus on its core electrical and utility business segments. The $187.1 million residential lighting business had been part of Hubbell's Electrical Solutions Segment.
The transaction was finalized in the first quarter of 2024. From a financial reporting perspective, Hubbell had classified the business as held for sale in the fourth quarter of 2023, in anticipation of this divestiture. The company expects to record a gain on sale between $1 million and $10 million.
Kingswood Capital Management, a private equity firm based in Los Angeles, specializes in revitalizing businesses undergoing various operational, financial, or market transitions. Kingswood aims to enhance the value and reach of Progress Lighting in the residential market.