Revolution Lighting Technologies, Inc. (NASDAQ: RVLT) (“Revolution Lighting”), a leader in advanced LED lighting technology, announced it has entered into a definitive agreement to acquire Relume Technologies (“Relume”), a leading manufacturer of outdoor LED products and smart grid control systems for outdoor lighting applications.
Under the terms of the agreement, Revolution Lighting will pay a total purchase price of $15 million for the Relume business on a debt-free basis and with a minimal level of working capital. Approximately $5 million of the purchase price will be paid in cash with the remaining value of $10 million paid in Revolution Lighting common stock.
“Both Revolution Lighting and Relume share a mutual vision to providing high quality, efficient and cost effective LED lighting systems through an active distribution network that educates, trains and services our customer base,” said Robert V. LaPenta, Chairman and Chief Executive Officer of Revolution Lighting Technologies. “Relume’s leadership in LED outdoor lighting applications will complement Revolution Lighting’s current LED product portfolio, allowing us to reach new markets and offer new products and services to our existing customers.”
While Revolution Lighting’s products are primarily focused on indoor applications, Relume serves several outdoor LED markets, including municipal street and roadway lights, parking lots and garages, pedestrian areas, buildings and outdoor advertising displays. More than 75% of Relume’s business is made up of outdoor lighting, with the remaining part of the business split between smart grid control systems, and LED lighting for media and signage. In addition, Relume’s patented Silver Circuitry™ process for LED thermal management offers the first seven-year LED warranty, adding significant value to Revolution Lighting customers by improving LED performance, lowering operating temperature and extending LED life.
“Combining Relume’s LED lighting applications with the suite of products offered by our existing Lumificient and Seesmart brands will help drive new market penetration,” added Charlie Schafer, President and Chief Financial Officer of Revolution Lighting. “Their demonstrated ability to deliver significant value to its sales force and customers will play a key role in contributing to and accelerating our profitable growth. We look forward to working closely with Relume’s highly experienced team members to execute on our shared vision as we build a world class LED company that delivers the best results for our customers, employees and all stakeholders.”
Relume’s President and CEO, Crawford Lipsey, and the majority of Relume’s management team will continue to operate the Company as usual from its current facility in Oxford Michigan. Lipsey is a 30-year veteran of the lighting industry and has deep expertise in LED lighting. Prior to joining Relume, Lipsey served 10 years as Executive Vice President of Acuity Brands Lighting, Inc.
“Revolution Lighting’s significant resources will allow Relume to invest in the products, people, technology and equipment necessary to further accelerate our growth in the LED lighting market,” said Lipsey. “Our businesses are an ideal strategic fit and we are confident that our product offering, engineering capabilities and sales resources will support and enhance Revolution Lighting’s business and growth.”