Signify is buy Cooper Lighting from its parent Eaton for £1.1 billion, it has been announced.
Signify, formerly Philips Lighting, says the deal – part of an industry-wide trend of consolidation – would great ‘substantial value’ as there are opportunities to make synergy savings of £47 million every year. However, so-called 'front of house’ operations – the sales team, distributors and agents, as well as marketing and product development teams – would continue to operate separately.
The agreement is subject to approval by regulatory authorities and is expected to take place in the first quarter of 2020.
Cooper Lighting Solutions is headquartered in Georgia, United States and supplies commercial lighting, controls and connected lighting. Brands include Cooper, Corelite, Halo, McGraw-Edison and Metalux.
The company sells its luminaires through a large agent network as well as though retailers, distributors and end-user customers.
The business generated2 USD 1.7 billion of sales in 2018, of which 84% were LED-based, a reported profit of USD 187 million.
Signify CEO boss Eric Rondolat told the press: ‘Today’s announcement confirms the strategic importance of the North American market for Signify. This acquisition will substantially strengthen our position in this attractive market.
‘We look forward to welcoming the team from Cooper Lighting. They have built a high-performance company based on professionalism, truly innovative offers and a long and strong relationship with their customers.
‘We share a genuine passion and single focus for Lighting and a successful track record in innovation.
‘We will join forces to further develop connected lighting and provide our customers with the highest level of service while optimising operational efficiencies.’
In other market developments, Glamox has made a £30 million offer for ES-System, the Polish firm which won a Lux Award for product development in 2018. The company, headquartered in Cracow, has nearly 900 employees and two manufacturing plants located in Wilkasy and Dobczyce. ES-System is listed at the Warsaw Stock Exchange and had sales of approximately £38 million in 2018.
- See Signify at the LuxLive 2019 exhibition next month. The show takes place on Wednesday 13 November and Thursday 14 November 2018 at ExCeL London. Entry is free if you pre-register here.