Philips lights up with Genlyte

Philips has announced the $2.7bn acquisition of Genlyte, a Louisville, Kentucky-based lighting fixtures manufacturer, based on an offer price of $95.50 per share.

Under the merger, Philips expects to expand its product range into the North American market. It also expects to benefit from economies of scale in the purchase of materials and services, and from Genlyte’s expertise in outsourcing and streamlining manufacturing activities.

During the 12-month period ending September 2007, Genlyte, which employs 6,700 people, reported sales of $1.6bn with an earnings before interest, tax and amortisation (EBITA) margin of 14.9 per cent. Genlyte sells to distributors and electrical wholesalers, and nearly 90 per cent of its 2006 revenues were related to commercial and industrial applications. The rest was related to high-end residential applications.

This latest acquisition follows on from Philips’ acquisition of Boston-based Color Kinetics in June.