LSI Industries Acquires Canada’s Best Holdings to Expand Turnkey Store Fixture Solutions
LSI Industries Inc., a leading U.S.-based manufacturer of commercial lighting and display solutions, has announced the acquisition of privately held Canada’s Best Holdings (“CBH”) for an all-cash purchase price of USD $24.0 million, with an additional $7.0 million potential earnout based on performance. CBH, commonly known as Canada’s Best Store Fixtures (CBSF), is a premier provider of retail fixtures and custom store design solutions, catering to industries such as grocery, quick-service restaurants (QSR), convenience stores (c-stores), banking, and specialty retail. With a fully integrated, built-to-order approach covering the entire project lifecycle—from design to fabrication and installation—CBH has positioned itself as a trusted partner for both regional and large multinational brands. The company operates from four key marketing, production, and distribution facilities in Ontario and Alberta, Canada.
James A. Clark, President and Chief Executive Officer of LSI Industries, emphasized the strategic nature of this acquisition, stating, “LSI continues to build a robust platform of lighting and display solutions across North America, fostering sustained value creation through a blend of organic growth and strategic acquisitions. The acquisition of CBH marks another significant milestone in our multi-year growth plan, further enhancing our capabilities, market presence, and vertical integration.”
Clark elaborated on the importance of CBH, highlighting its stature as one of Canada’s largest custom display fixture providers. “CBH’s vertically integrated model, technical expertise, deep customer relationships, and commitment to performance excellence align seamlessly with LSI’s operational philosophy. CBH represents our third acquisition in the custom display solutions sector in four years and complements the EMI Industries acquisition completed in April 2024. This transaction is expected to be immediately accretive to our margin rates and earnings per share.”
From a strategic perspective, the acquisition serves multiple objectives. CBH broadens LSI’s exposure in key markets, including grocery, QSR, and c-store segments, while also enhancing its presence in newer verticals such as financial institutions, pharmacies, and specialty retail. Additionally, the acquisition significantly strengthens LSI’s foothold in Canada, allowing the company to serve customers with operations across both the United States and Canada. With minimal overlap between their customer bases, the potential for cross-selling opportunities is substantial.
Bud Morris, CEO, and Luisa Loffreda, COO and Co-founders of CBH, expressed their enthusiasm for joining LSI, stating, “LSI is an industry leader with a strong track record of growth and value creation. We are excited to become part of the LSI team and look forward to leveraging the combined strengths of our businesses.”
Clark added, “This acquisition further solidifies LSI’s position as a key player in the retail display solutions market. We are thrilled to welcome Bud, Luisa, and CBH’s 120 employees to the LSI family. Our focus remains on driving profitable growth, operational efficiency, and disciplined capital allocation to create sustained value for our shareholders.”
Financial and Transaction Overview
CBH has consistently demonstrated stable and profitable growth, with average annual sales of USD $24.0 million and an average adjusted EBITDA of USD $4.0 million over the past two fiscal years. The transaction is expected to be immediately accretive to LSI’s margin rates and earnings per share.
LSI financed the acquisition through cash and available funds under its $100 million credit facility. Upon closing, the company expects its pro-forma net debt to adjusted EBITDA ratio to be approximately 1.1x. Over the next 24 months, LSI plans to significantly reduce its net leverage through anticipated free cash flow growth from the combined businesses.
As part of the acquisition, CBH’s 120 employees will transition to LSI, while its leadership team, including CEO Bud Morris, will remain in place. CBH will retain its independent brand identity and continue operating under LSI’s display solutions segment, with reporting integration beginning in the fiscal third quarter of 2025.
Strategic Rationale
The acquisition of CBH advances LSI’s strategic objectives in multiple ways:
- Market Leadership in Retail Display Solutions: CBH represents LSI’s third acquisition in the custom display solutions sector in four years, following the acquisitions of JSI Store Fixtures in 2021 and EMI Industries in 2024. The combined strength of these entities establishes LSI as a leading provider of retail display solutions across North America, serving multinational clients with cross-border operations.
- Expansion in the Canadian Market: CBH will become LSI’s largest Canadian business unit, with its well-established customer relationships providing significant revenue synergies.
- Minimal Customer Overlap: The acquisition presents strong commercial synergy potential, as approximately 80% of CBH’s fiscal 2024 revenue came from customers not currently served by LSI. This lack of overlap creates new cross-selling opportunities and expands LSI’s reach within existing and new market segments.
- Diversification into New Markets: While LSI has traditionally focused on grocery, QSR, and c-stores, CBH enhances LSI’s presence in financial institutions, commercial banking, and specialty retail. Approximately 60% of CBH’s fiscal 2024 revenue originated from markets where LSI had a limited presence.
- Strengthened Manufacturing Capabilities: The addition of CBH brings 132,000 square feet of additional manufacturing, distribution, and logistics space in Ontario and Alberta. This expansion enhances LSI’s ability to meet growing demand for custom retail fixtures while improving local fulfillment capabilities for Canadian customers.
- Immediate Financial Benefits: CBH has consistently delivered an adjusted EBITDA margin above LSI’s trailing twelve-month average. The acquisition is expected to contribute positively to LSI’s financial performance, reinforcing its long-term growth trajectory.
LSI Industries Acquisition of Canada’s Best Holdings Conference Call
LSI will hold a conference call on March 12, 2025, at 9 a.m. ET to discuss the acquisition and conduct a Q&A session. The webcast and accompanying materials will be available on LSI Industries’ Investor Relations website.
Conference Call Details:
- Live Call Dial-In: 877-407-4018
- Replay Call: 844-512-2921
- Replay ID: 13751917 (Available through March 24, 2025)
By acquiring CBH, LSI Industries reinforces its position as a leading provider of commercial lighting and display solutions, driving future growth and innovation while expanding its footprint across North America. The strategic synergies between LSI and CBH set the stage for enhanced customer offerings, increased operational efficiencies, and long-term shareholder value.
