LSI Industries

LSI Industries Inc. (Nasdaq: LYTS, “LSI” or the “Company”) a leading U.S. based manufacturer of commercial lighting and display solutions, today announced the acquisition of privately held Canada’s Best Holdings (“CBH”) for an all-cash purchase price of USD $24.0 million, with a $7.0 million performance-based earnout potential.

Ontario-based CBH, widely recognized as Canada’s Best Store Fixtures (CBSF), is a leading provider of retail fixtures and custom store design solutions for grocery, quick service restaurant, c-store, banking, and specialty retail environments. From design to fabrication and installation, CBH offers a vertically integrated, built-to-order solution that spans the full project lifecycle. CBH is an established partner of choice for customers ranging in size from small regional chains to national and international brands with thousands of sites. CBH operates from four strategically located marketing, production and distribution facilities in Ontario and Alberta, Canada.

“LSI continues to build a lighting and display solutions platform of scale across North America capable of delivering sustained value creation through a combination of high-value organic and inorganic growth,” stated James A. Clark, President and Chief Executive Officer. “Our acquisition of CBH represents another important strategic milestone that further expands our capabilities, geographic reach, and vertical market focus, consistent with the multi-year growth roadmap outlined within our Fast Forward plan.

“CBH is one of the largest custom display fixtures companies in Canada,” continued Clark. “CBH’s vertically integrated model, proven technical expertise, deep customer relationships, and longstanding cultural focus on performance excellence closely aligns with our team at LSI. CBH represents our third acquisition within the custom display solutions market in the last four years and is highly complementary to the EMI acquisition we completed in April 2024. The transaction is expected to be immediately accretive on a margin rate and earnings per share basis.

“At a strategic level, this transaction achieves several key objectives,” continued Clark. “CBH brings additional exposure to our grocery, QSR and c-store markets, while increasing our presence within newer verticals, such financial institutions, pharmacy, and specialty retail. CBH significantly increases our presence in the rapidly growing Canadian market, providing local project capabilities for large retailers with store locations throughout the United Sates and Canada, as well as customers with only Canadian based locations. Further, we share little overlap between our customer rosters. We see the potential for significant cross-selling synergies given our combined solution set, providing customers one-stop partner capabilities to meet their branding and consumer experience requirements.”

“LSI is an industry leader with a proven record of growth and value creation. We are proud to become the newest part of the LSI team and look forward to unlocking the powerful potential of the combined businesses,” stated Bud Morris, CEO and Luisa Loffreda, COO and Co-founders of CBH.

“CBH represents an important bolt-on acquisition for LSI and we’re excited to welcome Bud, Luisa and their more than 120 employees to the LSI family of companies,” stated Clark.

“Looking ahead, LSI remains focused on profitable commercial growth, continued operational rigor, and disciplined, returns-driven capital allocation,” concluded Clark. “Our integrated portfolio of lighting and display solutions are unique to the markets we serve, creating a significant multi-year opportunity for our business and shareholders. We look forward to building further scale and capabilities as we capitalize on a growing, high-value addressable market in the years ahead.”

Financial and transaction overview​

CBH has a proven track record of stable, profitable growth. During the last two fiscal years, CBH generated average annual sales of USD $24.0 million and average adjusted EBITDA of USD $4.0 million. The transaction is expected to be immediately accretive to LSI on both a margin rate and earnings per share basis.

LSI funded the acquisition of CBH utilizing cash and availability under its $100 million credit facility. At closing, LSI anticipates that its pro-forma ratio of net debt outstanding to trailing twelve month adjusted EBITDA will be approximately 1.1x. LSI intends to significantly reduce net leverage within the business during the next 24 months, supported by anticipated growth in pro-forma free cash flow from the combined entities.

As part of the transaction, the Company will welcome CBH’s 120 employees to LSI, while retaining CBH’s experienced leadership team, including President and CEO Bud Morris, together with each of its four facilities. CBH will remain an independent brand, given its established commercial presence in the market. CBH will become part of LSI’s display solutions segment on a reporting basis beginning in the fiscal third quarter of 2025.

Compelling transaction rationale​

• Acquisition of CBH further positions LSI as a market-leading business of scale within the retail display solutions market. CBH represents LSI’s third acquisition within the custom display solutions market in the last four years. In 2021, LSI acquired JSI Store Fixtures, designer of refrigerated and non-refrigerated display fixtures, followed by the acquisition of EMI Industries, a custom display fixtures company, in 2024. LSI believes the combination of JSI, EMI, and CBH creates a leading retail display solutions growth platform across North America, one capable of serving multi-national clientele with cross-border operations.
• CBH accelerates LSI’s strategic expansion within Canadian market. CBH will become LSI’s largest business by revenue in Canada, one whose well-established, long-term customer relationships are expected to provide significant revenue synergies in the market.
• Minimal overlap in combined LSI-CBH customer lists provides for significant commercial synergy potential. While the two companies share certain customers, the majority of customers do not overlap, representing a significant cross-selling opportunity for LSI. The business combination also expands LSI’s capability to attract new customers in existing markets. In fiscal 2024, approximately 80% of CBH’s revenue was with customers not currently served by LSI.
• CBH further expands LSI’s vertical market presence within Grocery, C-Store, and QSR/Restaurant, while providing a compelling entry point into other diverse markets. In fiscal 2024, approximately 60% of CBH’s revenue was derived from vertical markets where LSI does not have a significant presence, including financial institutions/commercial banking and specialty retail.
• CBH provides local retail display fixtures manufacturing for Canadian customers. The addition of CBH to the LSI portfolio provides for an additional 132,000 square feet of manufacturing, distribution and logistics operations in Ontario and Alberta. LSI believes the local fulfillment capabilities provided by the acquisition of CBH will support growing demand for its custom retail fixtures.
• LSI anticipates that CBH will be immediately accretive on both a margin rate and earnings per share basis. CBH generated an average adjusted EBITDA margin over the last two fiscal years, above LSI’s trailing-twelve month Adjusted EBITDA margin.

Clarity combines traditional lighting concepts with the latest in LED technology. The centrally positioned laser-etched light guide assembly houses the LED array and provides highly uniform direct and indirect lighting. Using premium materials and a post-fabrication paint process, the luminaire provides a sophisticated appearance that upgrades any space. Clarity excels in providing low-glare illumination without compromising on energy efficiency.

Available in 2’x2′, 1’x4′ and 2’x4′ form factors, Clarity troffers are also field selectable. The ability to select lumen output and color temperature on the go gives the end user and installer tremendous flexibility to personalize their space in a very affordable fashion. The selection can be done before, during or after installation. Settings can also be factory locked if so preferred by the end user.

Clarity is available with essential accessories such as factory installed or remote battery backup for standby lighting, surface mount and flange kits for drywall recess, as well as remote sensing and control options. Its compatibility with AirLink Blue ensures layered energy savings as well as building code compliance.

LiniArc® Wet Location (LAW2) is an IP66 rated architectural-grade luminaire designed for a broad range of exterior and interior applications. With clean aesthetics and unparalleled performance (up to 128LPW), the LAW2 extends interior linear runs to the outdoors. The factory-sealed design provides peace of mind to installers and customers alike, keeping dust and bugs at bay. Wall, Mullion, Recessed, Surface or Suspended mounting configurations available.

Common applications include but are not limited to, walkways, soffits, breezeways, banks and quick serve restaurants, grocery and convenience stores, hospitality and automotive dealerships.

Made with premium materials, the LAW2 uses a high purity extruded Aluminum housing for corrosion resistance. The LAW2 also uses an impact and UV-resistant polymeric lens. Vandal resistant hardware provides added safety and security. With operating temperatures ranging from -40F (-40C) to 122F (50C), the LAW2 luminaire is designed to withstand harsh environmental conditions.

LAW2 is available in 1ft to 8ft lengths, with direct, indirect or direct/indirect illumination. A drop lens configuration further enhances LiniArc’s architectural aesthetic with up to 8% up-light. It helps eliminate the cave effect. Multiple light distributions are offered to minimize light pollution (dark sky) and to ensure light is directed towards the area that needs to be illuminated. Cold weather integral or remote emergency battery backup options available.

Various lighting controls including standalone or networked options are available. Standard finishes include White, Black, Bronze, Metallic Silver, Graphite and Platinum.

Please contact factory for more details regarding 3rd party controls integration (3PC in ordering guide), or custom lengths, lumen packages or finishes.

LiniArc® is proudly manufactured in the USA and meets applicable requirements for BAA or BABA Compliance.

The Advantage Continuous Linear (ACL3) is a specification-grade linear platform that offers tremendous value for any commercial project. The ACL3 offers seamless continuous runs with both direct and indirect illumination options to control glare in any application. 90 degree illuminated corner options help complete a full rectangle for conference rooms, open office or reception areas.

At an ultra-high color rendering index (90 CRI minimum), object colors in the space are realistically rendered. The ACL3 is offered in truly universal input voltage of 120-347V for applications in both US and Canada.

A range of controls options are offered with the ACL3 for both code compliance and energy savings. Third party controls (3PC) integration is a unique feature offered by LSI to provide additional flexibility where LSI light fixtures are available with other manufacturer’s controls platforms.

Additional lumen packages and finishes available. Contact LSI Customer Service or Quotes for shop drawings or pricing information.

JSI Store Fixtures, an LSI Industries Inc. company (Nasdaq: LYTS), shipped its first order of refrigerated retail displays featuring environmentally friendly R290 refrigerant this month. JSI’s standalone refrigeration systems are a mainstay in the U.S. grocery market. The new R290 is a propane-based system that provides customers with an alternative product that is a non-toxic, zero ozone-depleting refrigerant with a Global Warming Potential (GWP) of 3, compared to common HFC Refrigerant having a GWP rating greater than 1,400.

“Interest in this product is very high and we anticipate continued adoption of this solution as customers witness the effectiveness of R290 in their store environments,” said James A. Clark, LSI Industries President and Chief Executive Officer.

The introduction of the R290 refrigerant solution is a natural extension of JSI’s commitment to introducing sustainable, energy-efficient, and environmentally friendly solutions into JSI’s refrigerated display products.

“This solution supports our initiatives to continually develop environmentally sustainable practices at JSI and LSI and advance the sustainability and efficiency goals of our customers. In addition to being environmentally friendly, R290 models will bring a variety of benefits including reduced energy consumption and reduced system complexity,” said Clark.

The Environmental Protection Agency approved R290 as an ‘acceptable substitute’ for retail food refrigeration under the Significant New Alternative Policy (SNAP) program. JSI was well positioned to implement this new method in its store fixtures and to provide customers with an exciting, innovative, and environmentally sound solution to improve the environment.

JSI is committed to transitioning away from CFCs, HCFCs and HFCs to more environmentally friendly natural refrigerants such as R290 propane. JSI established a new manufacturing site for research and development of next generation, environmentally friendly products to continue innovating industry-leading solutions.

Adding this solution to its product line continues JSI’s fast pace of introducing more than 20 new products to the market for each of the last five years.

About JSI Store Fixtures

A U.S. based manufacturer, JSI Store Fixtures is an industry-leading producer of innovative in-store displays for the grocery, convenience and food retailer markets. JSI started in 1991 in Milo, Maine and continued to grow until it was acquired by LSI Industries in 2021. JSI uses its four facilities across the U.S. and Canada to engineer, optimize and manufacture its energy efficient and environmentally friendly fixtures.

NEW from LSI! The Linear Area Light is perfectly suited for a variety of pedestrian and parking applications. Designed for new construction as well as retrofit utilizing LSI’s quick mount brackets, it is ideal for a wide variety of specification grade applications where performance & aesthetics are critical. Suitable for schools, office buildings, parking lots, refueling & c-store, quick serve restaurants, walkways, campuses and general area lighting applications.

Features & Specifications

• Clean Contemporary Styling
• 4″ x 4″ Housing Size Ideal for Pedestrian Scale Applications
• 3 Housing Lengths (32″, 40″ and 48″)
• 6 Standard Lumen Packages and Factory Programmable Drivers for Custom Lumen Outputs
• 4 Standard CCTs @ 80 CRI
• 4 Distributions (Type 2, 3, 4, 5)
• Factory Rotatable Silicone Optics
• Integrated Sensors and Controls

The Mirada Wall Sconce’s sleek design and wide feature set render it ideal for Commercial & Architectural applications such as Schools, Office Buildings, Strip Malls, Automotive Dealerships, Petroleum Stations, New Construction, Renovations & General Purpose Lighting. Multiple lens options let you choose maximum photometric performance, maximum visual comfort or the ideal blend of both.

The silicone lens (SIL) versions provide high lumens per watt and precision photometric control. The visual comfort (VC) clear and diffuse lens options are available in acrylic or polycarbonate materials and feature a large aperture lens with recessed LEDs to minimize brightness and glare. The polycarbonate lens versions come with an IK10 impact rating and can be ordered with tamper proof hardware for high abuse applications. The Mirada Wall Sconce also has a wide variety of CCT selections, controls and options as well as companion area, post top and bollard products making it the ideal solution for almost any wall mount application.

Construction

• Rugged die-cast aluminum housing.
• Fixtures are finished with LSI’s DuraGrip® polyester powder coat finishing process. The DuraGrip finish withstands extreme weather changes without cracking or peeling. Other standard LSI finishes available. Consult factory.
• Extended housing available with 1/2” threaded hubs for surface conduit and rated wire.
• Standard luminaire shipping weight: TBD lbs in carton.
• Max luminaire shipping weight: 12 lbs in carton (20 lbs w/EH option)

Optical System

• State-of-the-Art one piece silicone optic provides industry leading optical control while also acting as an integrated gasket reducing system complexity and improving fixture reliability.
• Proprietary silicone refractor optics provide exceptional coverage and uniformity in distribution types 2, 3, and FT.
• Silicone optical material does not yellow or crack with age and provides a typical light transmittance of 93%.
• Zero uplight.
• Available in 5000K, 4000K, and 3000K color temperatures per ANSI C78.377.
• Minimum CRI of 70

Electrical

• • High-performance driver features overvoltage under-voltage, short-circuit, and over temperature protection.
• • 0-10V dimming (10% - 100%) standard.
• • Standard Universal Voltage (120-277 VAC). Input 50/60 Hz or optional. High Voltage (347-480 VAC).
• L70 Calculated Life: >60k Hours
• Total harmonic distortion (THD): <20%
• Operating temperature: -40°C to +50°C (-40°F to +122°F).
• Power factor (PF): >.90
• Input power stays constant over life.
• Optional 10kV surge protection device meets a minimum Category C Low operation (per ANSI/IEEE C62.41.2).
• High-efficacy LEDs mounted to metal-core circuit board to maximize heat dissipation
• Driver is fully encased in potting material for moisture resistance. Driver complies with FCC standards. Accessible driver and electrical components.
• Optional battery backup provides 90-minutes of constant power to the LED system, ensuring code compliance. A test switch/indicator button is installed on the housing for ease of maintenance. Standard battery rated for 0°C to 50°C with cold weather battery rated for -20°C to 50°C (40°C max for 8L). 120-277V Only

Controls

• Optional integral passive infrared Bluetooth™ motion. Fixtures operate independently and can be commissioned via iOS or Android configuration app.
• Optional button photocell turns fixtures on and off based on ambient light levels for dusk to dawn lighting.
• LSI’s AirLink Blue wireless control system options allow for fixture and motion sensor grouping while reducing energy and maintenance costs.

Mirada Small Wall Sconce - LSI Industries

www.lsicorp.com