Lighting Group Acquires $160M Online Lighting Retailer

2021 design holding ydesign ylighting.jpg

Design Holding, the world’s largest group of companies in the high-end lighting decor sector, has acquired a U.S.-based online retailer, YDesign - operator of YLighting.com and Lumens.com.

Design Holding includes FLOS, Louis Poulsen, B&B Italia and their respective sub-brands.

When one lighting company acquires another lighting company, the gist is often "one manufacturer buys another." Those transactions are done for a myriad of reasons, but the result is usually a broader portfolio of products and a larger customer base.

This transaction is different, as this is a channel play. The lighting sectors of decorative and residential lighting have long been selling online direct-to-consumer. Flos has been doing that for years. Brands like Hubbell-owned Progress Lighting and Generation Brands' Sea Gull Lighting list prices on their company websites and then link website visitors to an online retail partner.

YDesign, operator of YLighting and Lumens.com, claims to have online sales of $160M in 2020. This channel integration strategy by Design Holdings will allow them to directly sell to a significant piece of the U.S. market while retaining more profit margin and possibly promoting its own Louis Poulsen and Flos products more visibly than non-Design Holdings brands.

Below is the press release from Design Holdings:

PRESS RELEASE

Design Holding S.p.A. enters into agreement to acquire YDesign Group, LLC, US-based leading online retailer of high-end, modern lighting and home furnishings

Milan, April 19, 2021 – Design Holding (“DH” or “The Group”) – an international group operating in the global high-end design market that includes industry leading brands such as B&B Italia, Flos and Louis Poulsen, today announced that it has signed, via a wholly-owned, newly established subsidiary, an agreement to acquire YDesign Group, LLC (“YDesign”), a US-based e-commerce retailer headquartered in Walnut Creek (San Francisco, California) and leader in the US online high-end lighting market.

YDesign, which has 200,000 active customers among end consumers, architects, designers and specifiers, generated $160 million in revenues in 2020, driven by 30% growth in the consumer segment representing around 2/3 of the total turnover. YDesign operates through two websites: YLighting.com and Lumens.com. YDesign distributes several well-known European brands including Artemide, Foscarini, Kartell, Muuto, Nemo, Tom Dixon as well as Flos and Louis Poulsen.

The acquisition is part of Design Holding’s strategy to expand its geographic reach, particularly in the attractive North-American market, strengthen the Group’s digital presence and provide more services and added value to its customers, both private individuals and A&Ds.

Gabriele Del Torchio, Chairman of the Group, said: “We are very excited to welcome YDesign Group and the management team as part of the Design Holding family. This acquisition fits into the broader plan of establishing Design Holding as the leading innovative high-end design platform with a truly multi-channel value proposition. We have been impressed with YDesign’s reputation for trusted relationships with world-class vendor brands and its broad product assortment, operational excellence and ability to support customers throughout the purchase process with highly trained customer sales and service teams. The preservation of YDesign’s existing organization and the continued independence of its commercial value propositions are both integral to the success of this combination. At the same time, YDesign will benefit from Design Holding’s global presence, distinctive product knowledge and marketing experience.”

YDesign’s CEO, Laura Walsh, together with the management team will remain onboard. Laura Walsh commented: “We are thrilled by the many growth opportunities that lie ahead for YDesign. Leveraging the strategic support of Design Holding’s international platform and reach, we’ll continue to strengthen our positioning as the market leader in the US high-end lighting industry and our reputation as the preferred destination for architects and designers.”

The acquisition is expected to close in the second quarter of 2021, subject to the satisfaction of customary closing conditions. YDesign Group was advised by Financo | Raymond James.

Notes:

This announcement constitutes a public disclosure of inside information by International Design Group S.p.A. under Regulation (EU) 596/2014 (16 April 2014).
This announcement may include forward-looking statements within the meaning of the securities laws of certain applicable jurisdictions. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts, including, without limitation, those regarding the group’s future financial position and results of operations, their strategies, plans, objectives, goals and targets, future developments in the markets in which the group participates or is seeking to participate or anticipated