LSI Industries Inc. (NASDAQ: LYTS, “LSI”), a top U.S. commercial lighting and display solutions manufacturer, has acquired EMI Industries (“EMI”) for $50 million in cash. EMI, based in Florida, specializes in standard and customized fixtures, displays, and food equipment for convenience stores, groceries, and restaurants. With over 40 years of experience, EMI collaborates closely with clients to create innovative solutions enhancing in-store experiences. Serving a diverse customer base from regional to international brands, EMI operates from five U.S. production facilities.
James A. Clark, President and CEO of LSI, sees this acquisition as expanding their product range and services, aligning with their Fast Forward strategy to capitalize on the ongoing investment cycle in grocery, convenience, and restaurant markets. By integrating their offerings, LSI aims to become a comprehensive solution provider across North America, emphasizing quality and technical expertise.
Alan Harvill, President and CEO of EMI Industries, expressed enthusiasm about joining LSI, anticipating synergies to unlock business potential.
The financial overview reveals EMI’s revenue and adjusted EBITDA for 2023 as approximately $87.0 million and $5.5 million, respectively, with immediate accretion to LSI’s earnings per share.
LSI funded the acquisition through cash and existing credit facilities, expecting a pro-forma net debt to adjusted EBITDA ratio of about 1.3x. They plan to reduce net leverage in the next 24 months with projected growth in free cash flow.
Following the acquisition, EMI’s leadership team and employees will join LSI, with EMI remaining an independent brand under LSI’s display solutions segment.
The rationale behind the acquisition includes synergies in market presence, integrated solutions for customers, and capitalizing on the ongoing investment cycle in key vertical markets. It aligns with LSI’s Fast Forward Strategy, aiming for sustained growth and value creation.
LSI will host a conference call on April 19, 2024, to discuss the acquisition, with details available on their website for participation.
For further information, visit www.lsicorp.com or dial into the conference call using the provided details.
