Philips announces agreement to acquire Genlyte - a leading US lighting fixture manufacturer.

Other News   Subscribe to newsletter

26 Nov 2007

Royal Philips Electronics (Philips) today announced it has entered into a definitive merger agreement with North American luminaires company Genlyte Group Incorporated (Genlyte) pursuant to which Philips will commence a tender offer to acquire all of the issued and outstanding shares of Genlyte for approximately US$ 2.7 billion.

The proposed transaction builds on Philips’ earlier acquisition of Color Kinetics and provides the company with a leading position in the North American luminaires/lighting fixtures market. The deal will also provide Philips with a platform for further profitable growth by building on Genlyte’s extensive presence among lighting customers in North America to speed up the adoption of energy-saving, green lighting technologies. The board of directors of Genlyte has unanimously approved the transaction, and will unanimously recommend that Genlyte shareholders accept the offer and tender their shares of Genlyte pursuant to the offer.

Based in Louisville, Kentucky, USA, Genlyte designs, manufactures and sells lighting fixtures, controls and related products for a wide variety of applications, including solid state lighting. Just under 90% of Genlyte’s 2006 revenues were related to commercial and industrial applications, with the remainder for high-end residential applications. A leader in the North American construction luminaires market, Genlyte sells to distributors and electrical wholesalers. The company’s products are also promoted through architects, engineers, contractors, and building owners. Genlyte employs approximately 6700 people.

Commenting on the announcement, Theo van Deursen, Chief Executive Officer of Philips Lighting, said: “Today’s announcement is another major step for Philips in executing its strategy to establish a global leadership position as a provider of energy efficient, solid state lighting solutions in key application areas. It follows on our recent acquisitions of Color Kinetics, TIR Systems, Partners in Lighting International, as well as our earlier investment to acquire full ownership of LumiLeds. Besides growing our presence in North America, this deal deepens our contacts to end users, such as wholesalers, contractors, architects and lighting designers, helping us speed up the market rollout of more energy efficient lighting and the introduction of new lighting technologies, like solid state lighting.”

Larry K. Powers, Chairman, President and Chief Executive Officer of Genlyte Group Incorporated added, “Philips is shaping the future of the lighting industry by building up an extensive portfolio of innovative, green lighting. Genlyte has also established a reputation for developing innovative new products utilizing the latest in lamp and ballast technologies. We believe joining with Philips is in the best interest of our shareholders, customers, vendors and employees, and that our combined resources will produce the best possible entity for competing, growing and creating value for our customers. We view this merger as an exciting opportunity for everyone, and as a result the Board will recommend the offer to our shareholders.”