January 7, 2025
Coleto Becomes Umbrella Name for Progress Lighting & Kichler
Coleto Brands formed to optimize operations and strengthen market presence
Coleto Brands, a new parent brand name, has been established following the 2024 acquisitions of two long-standing residential lighting brands: Progress Lighting and Kichler Lighting. The announcement comes after both brands were acquired in 2024 by Kingswood Capital Management, a private equity firm based in California. Progress Lighting was purchased from Hubbell Incorporated in February for $131 million, while Kichler Lighting was acquired from Masco Corporation in September for $125 million.
The merger places the two former competitors under one umbrella, though both brands will continue to operate independently in the marketplace. Kingswood has streamlined the organizations by integrating leadership and aligning sales and operations to increase efficiency.
Intertwining Operations
The creation of Coleto Brands is seen as an indication that Kingswood Capital may intend to market the two companies as a package sale to an eventual buyer rather than as separate entities in the future. While each brand retains its distinct identity, their operations are becoming increasingly intertwined. A single sales agency now represents both brands, and plans are underway to consolidate aspects of order processing, invoicing, and shipping.
In preparation for this week’s Lightovation tradeshow, Progress Lighting’s showroom in Dallas has been updated to include a Kichler display. Both brands will co-host a customer event at the show, highlighting their alignment under the Coleto Brands structure.
Together, Kingswood’s $256 million investment in these two brands reflects its intent to strengthen its position in the residential lighting industry through operational efficiencies and potential future consolidation. Kingswood’s efforts to enhance profitability through operational synergies will likely set the stage for its next steps, whether through continued investment or eventual divestment of the combined entity.
