LOUISVILLE, Ky., May 12 /PRNewswire-FirstCall/ -- Genlyte Group (GLYT)
announced that it has reached an agreement to acquire by way of merger JJI
Lighting Group (JJI), headquartered in Greenwich, Connecticut. JJI is one
of the largest privately held lighting fixture companies in the U.S. The
company has a group of recognized niche lighting brands that will
complement Genlyte's current product offerings. Approximately 85% of JJI's
revenues result from architects, engineers and designers specifying JJI's
products. The merger is expected to be completed within the next three
weeks. The purchase price for the transaction is expected to be $118.0
million plus liabilities for employee benefits, restructuring, and trade
payables, less estimated debt liabilities of $76.4 million which will be
eliminated at the closing.
JJI has 15 branded business units (13 based in the US and 2 in Europe)
which focus on specification-grade products. Indoor lighting divisions
include Alkco, Ardee, d'ac Lighting, Guth, Morlite, High-Lites, LAM,
Nessen, Specialty, and Vista. Outdoor Lighting divisions include Allscape,
Metrolux, and Quality. In addition, Hoffmeister Leuchten Gmbh located in
Germany with a sister company in Sweden is included in the transaction. The
U.S. accounts for 75% of JJI's revenues. The company's manufacturing base
consists of six facilities in the U.S. and one in Germany and employs 650
people.
For the year ended December 31, 2005, JJI achieved net sales of $129.3
million and reported operating income of $11.9 million before restructuring
and debt related costs. Pro forma 2005 EBITDA excluding nonrecurring
restructuring costs, and costs for planned terminations of pensions and
leases, is estimated to be $18.0 million.
Larry K. Powers, President and Chief Executive Officer of Genlyte Group
commented, "We are pleased with the strategic benefits of this acquisition.
This group of niche businesses will complement Genlyte's current product
offerings. In addition, it gives us an entry into Germany and Sweden and
could be a base to build a further presence in Europe.
"We will continue to operate JJI as an independent division of Genlyte
and all management, sales representation, and customers will remain in
place. We will gain operational efficiencies through purchasing and working
closely together with JJI's management team to enhance production
capabilities and lower cost.
"Annualized sales for JJI are forecasted to be slightly over $135
million this year. The transaction is expected to be slightly accretive to
our earnings in 2006."
Jim Haworth the current president of JJI will continue as the JJI
division president and general manager reporting to Larry Powers,
President, CEO, and Chairman of Genlyte. Chuck Florio the current JJI CFO
will continue as the JJI division vice president of finance reporting to
Jim Haworth.
JJI President, Jim Haworth stated, "This transaction is an excellent
opportunity for the customers, reps, and employees, of JJI to be associated
with one of the most highly respected commercial lighting business in North
America."
Sagent Advisors Inc. served as financial advisor to Genlyte and
provided a fairness opinion in connection with this transaction.
The Genlyte Group Incorporated (Nasdaq: GLYT) controls a 100% interest
in Genlyte Thomas Group LLC, which is a leading manufacturer of lighting
fixtures, controls, and related products for the commercial, industrial and
residential markets. Genlyte Thomas sells lighting and lighting accessory
products under the major brand names of Capri, Chloride Systems, Crescent,
Day-Brite, Gardco, Hadco, Ledalite, Lightolier, Lightolier Controls, Lumec,
Shakespeare Composite Structures, Stonco, Thomas Lighting, Vari-Lite, Wide-
Lite, and Canlyte.
The statements in this report with respect to future results, future
expectations, and plans for future activities and synergies may be regarded
as forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, and actual results may differ materially
from those currently expected. These forward-looking statements are
generally identifiable by use of the words "believes," "expects,"
"intends," "anticipates," "plans to," "estimates," "projects," or similar
expressions. Such future results are subject to various risks, such as the
ability of the Company to meet new business sales goals and realize desired
price increases, fluctuations in commodity and transportation costs,
slowing of the overall economy, changes in foreign currency translation
rates, increased interest costs arising from a change in the Company's
leverage or change in rates, failure of the Company's plans to produce
anticipated cost savings, the outcome of pending litigation, the timing and
magnitude of capital expenditures, as well as other risks discussed in the
Company's filing with the Securities Exchange Commission. The Company makes
no commitment to disclose any revision to forward-looking statements, or
any facts, events, or circumstances after the date hereof that may bear
upon forward-looking statements.
For additional information about JJI Lighting please refer to the web
site at: http://www.jjilightinggroup.com. For additional information about
Genlyte please refer to the Company's web site at: http://www.genlyte.com.
SOURCE The Genlyte Group Inc.
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Related links:
http://www.genlyte.com
http://www.jjilightinggroup.com
CONTACT:
William G. Ferko, CFO of Genlyte Group Inc.,
+1-502-420-9502
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