February 28, 2025
Breaking Up is Hard to Do: Genlyte and AD Part Ways
Cutting ties with AD could mean greater control or lost distributor favor
For years, certain Genlyte Solutions brands have had a steady presence in the electrical distribution landscape — including Stonco, Daybrite, Philips and Advance — flowing through distributor networks under the umbrella of buying group Affiliated Distributors (AD). But as of March 1, 2025, that relationship is over.
Genlyte, a business unit of Signify, is officially parting ways with AD after failing to negotiate a new agreement. The split is significant, not just because of Genlyte’s standing in the industry, but because AD is no longer just one buying group option — it’s essentially the buying group, thanks to its 2024 merger with IMARK Electrical. In the past, when a manufacturer left AD, they could pivot to IMARK. Now, there’s no safety net. Genlyte is on the outside, looking in.
What Happened?
Genlyte’s letter to stakeholders is careful, almost diplomatic. The company says it worked toward a “mutually beneficial” deal but couldn’t reach terms that fit its “boundary conditions.” That corporate-speak suggests a standoff: Genlyte likely wanted new terms — perhaps lower rebate payouts, changes to program structures, or a shift in distributor engagement — while AD, representing a powerful network of electrical distributors, seemingly pushed back. Without an agreement, both sides walked away.
For Genlyte, the loss of AD affiliation is more than a formality. AD distributors have long favored manufacturers that participate in its rebate and incentive programs. Without those built-in advantages, Genlyte products — including Philips commercial lamps and Advance ballasts and drivers — could see their priority status slip at AD-affiliated distributors.
Competitors still aligned with AD, like Acuity Brands, Current, and Cooper Lighting (which, despite also being part of Signify, operates independently in market channels), now have an edge. And so might LEDVANCE, Satco and others on the lamp side. If distributors prioritize brands that offer financial incentives, Genlyte will need to counterpunch — perhaps with aggressive pricing, direct rebate deals, or enhanced marketing programs.
A Strategic Reset?
That said, Genlyte isn’t necessarily positioning this as a loss. The company is emphasizing “enhanced programs for strategic partners,” eCommerce initiatives, and training resources. There’s a clear shift toward direct engagement with select distributors — potentially giving Genlyte more control over pricing, margins, and relationships.
By cutting AD out of the equation, Genlyte also sheds the fees and constraints that come with group-negotiated agreements. If the company reinvests those funds into direct partnerships, it could carve out a different kind of loyalty — one based on individualized support rather than broad rebate structures. But that’s a long game, and in the short term, some distributors may move away from Genlyte’s products.
A Signify spokesperson shared with us: "Genlyte Solutions, a Signify business, has appreciated our partnership with AD and its intention to create uniform member programs. However, we recognize our strategic distributor partners have their own unique needs and goals and require tailored support and different levels of attention, thus our decision to move away from AD. We are focused on strengthening these key partnerships and are committed to ensuring our relationships are meaningful, rooted in customized solutions, collaborative and mutually beneficial."
The AD Perspective
For AD, losing an important manufacturer is never ideal. While the buying group still counts numerous lighting brands in its portfolio, Genlyte’s exit could create gaps — especially in certain product categories like Philips lamps and Advance drivers. If other manufacturers take note of Genlyte’s departure and start questioning AD’s terms, the group may need to reevaluate its leverage.
AD’s strength has always been in numbers — uniting independent distributors to compete with larger national chains. If manufacturers begin looking outside AD’s ecosystem, that strength could be tested.
The Big Picture
At its core, this breakup highlights the shifting balance of power between manufacturers and distributor networks. In an era where digital platforms, direct sales, and supply chain disruptions are reshaping the industry, the traditional buying group model isn’t as untouchable as it once was.
For Genlyte, the risk is clear: without AD, its products might lose traction among distributors who rely on rebates and incentives. But if Genlyte plays its cards right — leveraging direct relationships, digital tools, and strategic pricing — it could emerge leaner, more flexible, and ultimately more competitive.
For AD, the message is just as important: Even a top-tier brand is willing to walk away. And in a consolidating industry, that’s a signal worth watching.
