Revolution Lighting Technologies to Acquire Value Lighting

April 1, 2014

Revolution Lighting Technologies Inc., Stamford, Conn., has a definitive agreement to acquire Value Lighting Inc. and certain affiliates. Revolution is a lighting manufacturer concentrating on multi-family housing and new construction.

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 company. Value Lighting brings Revolution significant design and engineering capabilities to serve 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.”

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.

“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.”

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