LSI Industries Acquires Canada’s Best Holdings, Expands Turnkey Store Fixtures Solutions Portfolio
LSI Industries (LYTS) has announced the acquisition of Canada's Best Holdings (CBH) for USD $24.0 million, with an additional $7.0 million performance-based earnout potential. CBH, known as Canada's Best Store Fixtures, is a leading provider of retail fixtures and custom store design solutions operating from four facilities in Ontario and Alberta.
CBH generated average annual sales of USD $24.0 million and average adjusted EBITDA of USD $4.0 million over the last two fiscal years. The transaction, funded through cash and credit facility, will maintain a pro-forma net debt to adjusted EBITDA ratio of approximately 1.1x.
The acquisition brings 120 employees to LSI and expands its presence in grocery, QSR, c-store markets, while entering new verticals like financial institutions and specialty retail. CBH will operate as an independent brand within LSI's display solutions segment starting Q3 2025, marking LSI's third acquisition in the custom display solutions market in four years.
LSI Industries (LYTS) ha annunciato l'acquisizione di Canada's Best Holdings (CBH) per 24,0 milioni di USD, con un ulteriore potenziale di guadagno basato sulle performance di 7,0 milioni di USD. CBH, conosciuta come Canada's Best Store Fixtures, è un fornitore leader di arredi per negozi e soluzioni di design personalizzato per negozi, operando da quattro strutture in Ontario e Alberta.
CBH ha generato vendite annuali medie di 24,0 milioni di USD e un EBITDA rettificato medio di 4,0 milioni di USD negli ultimi due anni fiscali. La transazione, finanziata attraverso contante e una linea di credito, manterrà un rapporto pro-forma di debito netto su EBITDA rettificato di circa 1,1x.
L'acquisizione porta 120 dipendenti a LSI e amplia la sua presenza nei mercati della grande distribuzione, QSR e c-store, entrando in nuovi settori come le istituzioni finanziarie e il retail specializzato. CBH opererà come un marchio indipendente all'interno del segmento delle soluzioni espositive di LSI a partire dal terzo trimestre del 2025, segnando la terza acquisizione di LSI nel mercato delle soluzioni espositive personalizzate in quattro anni.
LSI Industries (LYTS) ha anunciado la adquisición de Canada's Best Holdings (CBH) por 24,0 millones de USD, con un potencial de ganancia adicional de 7,0 millones de USD basado en el rendimiento. CBH, conocida como Canada's Best Store Fixtures, es un proveedor líder de mobiliario para tiendas y soluciones de diseño personalizado, operando desde cuatro instalaciones en Ontario y Alberta.
CBH generó ventas anuales promedio de 24,0 millones de USD y un EBITDA ajustado promedio de 4,0 millones de USD durante los últimos dos años fiscales. La transacción, financiada a través de efectivo y una línea de crédito, mantendrá una relación pro-forma de deuda neta a EBITDA ajustado de aproximadamente 1,1x.
La adquisición aporta 120 empleados a LSI y amplía su presencia en los mercados de comestibles, QSR y c-store, al tiempo que entra en nuevos verticales como instituciones financieras y retail especializado. CBH operará como una marca independiente dentro del segmento de soluciones de exhibición de LSI a partir del tercer trimestre de 2025, marcando la tercera adquisición de LSI en el mercado de soluciones de exhibición personalizadas en cuatro años.
LSI Industries (LYTS)는 Canada's Best Holdings (CBH)를 2400만 달러에 인수했다고 발표했으며, 추가로 700만 달러의 성과 기반 수익 잠재력이 있습니다. CBH는 Canada's Best Store Fixtures로 알려져 있으며, 온타리오와 앨버타에 있는 네 개의 시설에서 운영되는 소매 가구 및 맞춤형 매장 디자인 솔루션의 선도적인 공급업체입니다.
CBH는 지난 두 회계연도 동안 연평균 2400만 달러의 매출과 평균 조정 EBITDA 400만 달러를 기록했습니다. 현금 및 신용 시설을 통해 자금을 조달한 이번 거래는 약 1.1배의 조정 EBITDA 대비 순부채 비율을 유지할 것입니다.
이번 인수로 120명의 직원가 LSI에 합류하며, 식료품, QSR, c-store 시장에서의 존재감을 확대하고 금융 기관 및 전문 소매와 같은 새로운 수직 시장에 진입하게 됩니다. CBH는 2025년 3분기부터 LSI의 디스플레이 솔루션 부문 내에서 독립 브랜드로 운영될 예정이며, 이는 LSI가 맞춤형 디스플레이 솔루션 시장에서 4년 동안 세 번째로 진행하는 인수입니다.
LSI Industries (LYTS) a annoncé l'acquisition de Canada's Best Holdings (CBH) pour 24,0 millions USD, avec un potentiel de gain supplémentaire de 7,0 millions USD basé sur la performance. CBH, connue sous le nom de Canada's Best Store Fixtures, est un fournisseur leader d'équipements de vente au détail et de solutions de design personnalisé pour magasins, opérant depuis quatre installations en Ontario et en Alberta.
CBH a généré un chiffre d'affaires annuel moyen de 24,0 millions USD et un EBITDA ajusté moyen de 4,0 millions USD au cours des deux dernières années fiscales. La transaction, financée par des liquidités et une ligne de crédit, maintiendra un ratio de dette nette pro forma par rapport à l'EBITDA ajusté d'environ 1,1x.
L'acquisition apporte 120 employés à LSI et élargit sa présence sur les marchés de l'épicerie, des QSR et des c-stores, tout en entrant dans de nouveaux secteurs tels que les institutions financières et le commerce de détail spécialisé. CBH fonctionnera en tant que marque indépendante au sein du segment des solutions d'affichage de LSI à partir du troisième trimestre 2025, marquant la troisième acquisition de LSI sur le marché des solutions d'affichage personnalisées en quatre ans.
LSI Industries (LYTS) hat die Übernahme von Canada's Best Holdings (CBH) für 24,0 Millionen USD angekündigt, mit einem zusätzlichen leistungsabhängigen Earnout-Potenzial von 7,0 Millionen USD. CBH, bekannt als Canada's Best Store Fixtures, ist ein führender Anbieter von Einzelhandelsausstattungen und maßgeschneiderten Ladenlösungen und betreibt vier Einrichtungen in Ontario und Alberta.
CBH erzielte in den letzten zwei Geschäftsjahren einen durchschnittlichen Jahresumsatz von 24,0 Millionen USD und ein durchschnittliches bereinigtes EBITDA von 4,0 Millionen USD. Die Transaktion, die durch Bargeld und eine Kreditlinie finanziert wird, wird ein pro forma Verhältnis von Nettoverbindlichkeiten zu bereinigtem EBITDA von etwa 1,1x aufrechterhalten.
Die Übernahme bringt 120 Mitarbeiter zu LSI und erweitert die Präsenz in den Märkten für Lebensmittel, QSR und c-store, während sie in neue Bereiche wie Finanzinstitute und spezialisierten Einzelhandel eintritt. CBH wird ab dem dritten Quartal 2025 als unabhängige Marke innerhalb des Segmentes für Displaylösungen von LSI agieren und markiert die dritte Übernahme von LSI im Markt für maßgeschneiderte Displaylösungen innerhalb von vier Jahren.
- Immediate accretion to margin rate and earnings per share
- Adds USD $24M in annual revenue and USD $4M in adjusted EBITDA
- Expands into new verticals (financial institutions, specialty retail)
- 80% of CBH's revenue comes from non-overlapping customers, creating cross-selling opportunities
- Strengthens North American presence with four Canadian facilities
- Maintains healthy leverage ratio of 1.1x net debt/EBITDA
- Takes on additional debt to fund the acquisition
- Integration risks with 120 new employees and four facilities
- Earnout liability of up to $7M based on performance metrics
Insights
LSI Industries' $31 million acquisition of Canada's Best Holdings (CBH) represents a strategic expansion that strengthens the company's North American presence in custom display solutions. The transaction structure—$24 million upfront with a $7 million performance-based earnout—appears financially prudent given CBH's demonstrated performance of $24 million average annual sales and $4 million EBITDA.
Most notably, this acquisition is immediately accretive to both margins and EPS, with CBH's EBITDA margins exceeding LSI's current profitability metrics. The purchase price represents approximately 7.75x EBITDA multiple, reasonable for a profitable business with complementary capabilities and minimal customer overlap.
From a balance sheet perspective, LSI maintains financial discipline with post-acquisition leverage of 1.1x net debt/EBITDA, indicating significant remaining flexibility for future investments while promising debt reduction within 24 months through increased free cash flow generation.
This transaction completes LSI's third strategic acquisition in display solutions following JSI Store Fixtures (2021) and EMI Industries (2024), creating a comprehensive platform capable of serving multinational clients across borders. The minimal customer overlap—80% of CBH's revenue comes from customers not currently served by LSI—presents substantial cross-selling opportunities that could drive additional organic growth beyond the immediate financial benefits.
LSI's acquisition of Canada's Best Holdings represents textbook strategic expansion that checks multiple critical boxes for creating shareholder value. The transaction extends LSI's geographic footprint into Canada while simultaneously broadening its vertical market penetration beyond existing strengths.
By acquiring CBH, LSI gains immediate access to four strategic Canadian facilities totaling 132,000 square feet of manufacturing and distribution capacity. This local production capability solves the critical "last mile" challenge for serving Canadian retail clients who demand regional fulfillment.
The complementary nature of this acquisition is particularly compelling. While reinforcing LSI's presence in grocery, QSR, and c-store segments, it provides immediate entry into financial institutions, pharmacy, and specialty retail verticals where LSI previously lacked significant presence. Approximately 60% of CBH's revenue derives from these new market segments.
The integration approach demonstrates strategic sophistication—maintaining CBH as an independent brand preserves its market identity and customer relationships while folding operations into LSI's display solutions segment for reporting purposes. Retaining CBH's leadership team, including founders Bud Morris and Luisa Loffreda, significantly reduces integration risk while preserving institutional knowledge and customer relationships.
This transaction completes a deliberate portfolio-building strategy in display solutions, creating a cohesive North American platform through targeted acquisitions of JSI, EMI, and now CBH—each bringing distinct capabilities, market access, and customer relationships.
LSI Acquires Canada’s Best Holdings for USD
Transaction Expands Display Solutions Capabilities Across Core Vertical Markets
LSI to Host Conference Call at 9 a.m. ET on Wednesday, March 12, 2025
“LSI continues to build a lighting and display solutions platform of scale across
“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
“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
LSI funded the acquisition of CBH utilizing cash and availability under its
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
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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.
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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.
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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.
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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.
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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 andAlberta . 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.
LSI INDUSTRIES ACQUISITION OF CANADA’S BEST HOLDINGS CONFERENCE CALL
A conference call will be held tomorrow, March 12, 2025, at 9 a.m. ET to review LSI’s acquisition of Canada’s Best Holdings and conduct a question-and-answer session.
A webcast of the conference call and accompanying presentation materials will be available in the Investor Relations section of LSI Industries’ website at www.lsicorp.com. Individuals can also participate by teleconference dial-in. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time to register, download and install any necessary audio software.
Details of the conference call are as follows:
Live Call Dial-In: |
877-407-4018 |
To listen to a replay of the teleconference, which subsequently will be available through March 24, 2025:
Call Replay: |
844-512-2921 |
|
Replay ID: |
13751917 |
ABOUT LSI INDUSTRIES
Headquartered in
FORWARD-LOOKING STATEMENTS
For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit https://investors.lsicorp.com as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors.
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INVESTOR & MEDIA CONTACT
Noel Ryan, IRC
720.778.2415
LYTS@vallumadvisors.com
Source: LSI Industries Inc.