Philips to acquire Genlyte

Source: Exec Digital USA

Date :11/26/2007 8:48:17 AM

Royal Philips Electronics it is to acquire U.S. lighting maker Genlyte for $2.7 billion in all-cash offer, the world's biggest lighting maker said on Monday.

Philips will launch an offer price of $95.50 per Genlyte share in an agreement which will create the number one lighting company in North America.

The board of directors of Louisville-based Genlyte has unanimously approved the transaction.

The deal follows Philip’s recent acquisitions of Color Kinetics, TIR Systems, Partners in Lighting International, as well as the earlier acquisition of LumiLeds.

Outpacing market

On the announcement Theo van Deursen, Chief Executive Officer of Philips Lighting, said that the announcement was ‘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.’

Following completion of the acquisition, Philips expects Genlyte’s revenue growth to continue outpacing the market, as Philips uses Genlyte’s market presence as a platform for introducing newer, green products into the North American market.

Philips’ plan to extend Genlyte’s activities beyond North America will also contribute to growth.

Netherlands-based Philips said it expects to close the deal in the first quarter of 2008.

November 26, 2007