Cincinnati-based company makes huge acquisition

March 4, 2017 by  

LSI Industries, Inc. of Cincinnati has bought Atlas Lighting Products Inc., of Burlington, North Carolina, according to an article in the Cincinnati Business Courier.

The purchase price was $96.9m, plus 200,000 five-year warrants for the purchase of LSI common stock, at a value of $9.95 per share. The value of the transaction in total is $97.5m, and will be paid for by combining cash on hand with another $66m from PNC Bank. LSI is a graphics and lighting company, and this is the biggest acquisition in the company’s history.

Dennis Wells, LSI’s president and CEO, described the purchase as a “highly strategic acquisition” that will allow it to offer many more products, expand its sources, and improve the company’s profit margin. The acquisition will allow LSI to align its costs and revenues effectively.

Atlas makes top-quality LED lighting items sold to electrical distributors. Acquiring Atlas will allow LCI to add items such as wallpacks and floodlights to its product list.

Following the acquisition, Atlas will retain its brand name, and its employees will join LSI’s workforce. The North Carolina facility will also remain open. James H. Bennett, who is the president of Atlas, will remain in that position, but Rector Samuel Hunt III, CEO and chairman, will retire.

Companies like this can benefit by working with a newsletter printing company, which can create a letter for stakeholders and customers explaining the acquisition.