Illustration 60886103 / Kheng Ho To / Dreamstime
Illustration 60886103 Kheng Ho To / Dreamstime
60886103 / Kheng Ho To / Dreamstime
60886103 / Kheng Ho To

Revolution Lighting Technologies to Acquire Value Lighting, Expand LEDs for Multifamily

March 14, 2014
Revolution Lighting Technologies Inc., Stamford, Conn., has a definitive agreement to acquire Value Lighting Inc. and certain affiliates, a lighting manufacturer that concentrates on the multi-family residential housing sector and new construction marketplace across the United States.

Revolution Lighting Technologies Inc., Stamford, Conn., has a definitive agreement to acquire Value Lighting Inc. and certain affiliates, a lighting manufacturer that concentrates on the multi-family residential housing sector and new construction marketplace across the United States.

The combination will give Value Lighting new LED options to bring its market. Based in Marietta, Ga., and founded in 2005, Value Lighting posted 2013 revenues of about $43 million and is expected to see $55 million in 2014, with EBITDA above 12% in both periods, the companies said in a release. More than half of Value Lighting’s expected 2014 revenues are in current backlog.

Value Lighting employs 75 people, who will join Revolution, and its management team will continue to run the Value Lighting operations. Value Lighting brings Revolution significant design and engineering capabilities, serving the multi-family marketplace, as well as hotels, assisted living facilities, student housing, military barracks and commercial facilities.

“This is an exciting and highly complementary acquisition that will allow Revolution Lighting to penetrate new markets, including the fast growing multi-family residential housing sector, and further accelerate our overall growth as a company,” said Robert LaPenta, chairman and CEO of Revolution Lighting Technologies. “Value Lighting’s existing and new build customers are seeking to expand into LED lighting solutions and will provide a new and significant distribution channel for our company.”

In terms of financial details, Revolution, which is publicly traded on NASDAQ, was refreshingly open about the deal. Revolution will pay a total of $35.6 million for the outstanding equity of Value Lighting plus $3.5 million of assumed debt. Approximately $7.5 million of the purchase price will be paid in cash, which is expected to be financed with bank debt, and the remaining $28.1 million will be paid in Revolution Lighting common stock. As part of the acquisition, Revolution Lighting expects to receive at a minimum $9 million of working capital.

”Revolution Lighting’s extensive dealer and distributor network will allow Value Lighting to reach a larger customer base with its lighting solutions for future customers,” said Value Lighting president Alan Carlquist. “We see significant opportunity for LED adoption in the markets we serve and have been on the search for a partner that will allow us to bring high-quality LED lighting solutions to our existing and new customer base. Revolution Lighting and its excellent network of dealers and distributors is the ideal partner to help us accelerate our growth with LED lighting.”