Kingswood Capital Management Announces Acquisition of Kichler Lighting and Merger with Progress Lighting to Establish a Leading Residential Lighting Platform
Kingswood Capital Management has acquired Kichler Lighting from Masco (NYSE: MAS) and will merge it with Progress Lighting to create a leading residential lighting platform in North America. The combined company will leverage complementary brands, expanded distribution, and enhanced service capabilities to serve various sales channels. Sean Veit, former Progress CEO, will lead as CEO, while Vijay Shankar, former Kichler President, will serve as Executive Chairman.
This strategic merger aims to preserve and enhance the distinct positioning of both Progress and Kichler brands, founded in 1906 and 1938 respectively. The leadership team, comprised of executives from both companies, is focused on a thoughtful integration process to maximize benefits for customers across homebuilder, trade, showroom, retail, and ecommerce segments.
Kingswood Capital Management ha acquisito Kichler Lighting da Masco (NYSE: MAS) e la fonderà con Progress Lighting per creare una piattaforma di illuminazione residenziale leader in Nord America. L'azienda combinata sfrutterà i marchi complementari, una distribuzione ampliata e capacità di servizio migliorate per servire diversi canali di vendita. Sean Veit, ex CEO di Progress, sarà il CEO, mentre Vijay Shankar, ex Presidente di Kichler, ricoprirà il ruolo di Presidente Esecutivo.
Questa fusione strategica mira a preservare e valorizzare la posizione distintiva dei marchi Progress e Kichler, fondati nel 1906 e 1938 rispettivamente. Il team di leadership, composto da dirigenti di entrambe le aziende, è concentrato su un processo di integrazione attento per massimizzare i benefici per i clienti nei segmenti dei costruttori di case, del commercio, dei showroom, del retail e dell'ecommerce.
Kingswood Capital Management ha adquirido Kichler Lighting de Masco (NYSE: MAS) y la fusionará con Progress Lighting para crear una plataforma líder de iluminación residencial en América del Norte. La empresa combinada aprovechará los marcas complementarias, la distribución ampliada y las capacidades de servicio mejoradas para atender a varios canales de ventas. Sean Veit, ex CEO de Progress, será el CEO, mientras que Vijay Shankar, ex Presidente de Kichler, actuará como Presidente Ejecutivo.
Esta fusión estratégica tiene como objetivo preservar y mejorar la posicionamiento distintivo de las marcas Progress y Kichler, fundadas en 1906 y 1938 respectivamente. El equipo de liderazgo, compuesto por ejecutivos de ambas empresas, se centra en un proceso de integración cuidadoso para maximizar los beneficios para los clientes a través de los segmentos de constructores de viviendas, comercio, exhibición, venta al por menor y comercio electrónico.
Kingswood Capital Management는 Masco(NYSE: MAS)로부터 Kichler Lighting을 인수하고 Progress Lighting과 합병할 예정입니다. 이를 통해 북미에서 선도적인 주거 조명 플랫폼을 만들 것입니다. 결합된 회사는 보완적인 브랜드, 확대된 유통망 및 향상된 서비스 역량을 활용하여 다양한 판매 채널에 서비스를 제공할 것입니다. Sean Veit, 전 Progress CEO가 CEO로 임명되고, Vijay Shankar, 전 Kichler 사장이 집행 회장직을 맡게 됩니다.
이번 전략적 합병은 각각 1906년과 1938년에 설립된 Progress 및 Kichler 브랜드의 독특한 포지셔닝을 보존하고 향상시키는 것을 목표로 합니다. 양사 임원으로 구성된 리더십 팀은 주택 건설업체, 무역, 쇼룸, 소매 및 전자상거래 부문 전반에 걸쳐 고객을 위한 이점을 극대화하기 위한 신중한 통합 프로세스에 초점을 맞추고 있습니다.
Kingswood Capital Management a acquis Kichler Lighting auprès de Masco (NYSE: MAS) et va fusionner avec Progress Lighting pour créer une plateforme d'éclairage résidentiel leader en Amérique du Nord. La société combinée s'appuiera sur des marques complémentaires, une distribution élargie et des capacités de service améliorées pour servir divers canaux de vente. Sean Veit, ancien PDG de Progress, sera le PDG, tandis que Vijay Shankar, ancien Président de Kichler, sera le Président Exécutif.
Cette fusion stratégique vise à préserver et à améliorer le positionnement distinctif des marques Progress et Kichler, fondées respectivement en 1906 et 1938. L'équipe de direction, composée d'exécutifs des deux entreprises, se concentre sur un processus d'intégration réfléchi pour maximiser les avantages pour les clients dans les segments des constructeurs de maisons, du commerce, des salles d'exposition, du détail et du commerce électronique.
Kingswood Capital Management hat Kichler Lighting von Masco (NYSE: MAS) übernommen und wird es mit Progress Lighting fusionieren, um eine führende Plattform für Wohnbeleuchtung in Nordamerika zu schaffen. Das kombinierte Unternehmen wird komplementäre Marken, erweiterte Distribution und verbesserte Servicefähigkeiten nutzen, um verschiedene Vertriebskanäle zu bedienen. Sean Veit, ehemaliger CEO von Progress, wird als CEO fungieren, während Vijay Shankar, ehemaliger Präsident von Kichler, als Executive Chairman tätig sein wird.
Diese strategische Fusion zielt darauf ab, die einzigartige Positionierung der Marken Progress und Kichler, gegründet 1906 und 1938, zu bewahren und zu verbessern. Das Führungsteam, das aus Führungskräften beider Unternehmen besteht, konzentriert sich auf einen durchdachten Integrationsprozess, um die Vorteile für Kunden in den Bereichen Wohnungsbau, Handel, Showroom, Einzelhandel und E-Commerce zu maximieren.
- Creation of a leading North American residential lighting platform
- Expanded distribution and service capabilities
- Complementary brand strengths across multiple sales channels
- Potential for enhanced customer service and product offerings
- Potential integration challenges merging two established brands
- Possible short-term disruptions during the transition period
Insights
The acquisition of Kichler Lighting by Kingswood Capital Management and its merger with Progress Lighting is a significant move in the residential lighting industry. This consolidation creates a formidable player with expanded distribution and service capabilities. The combined entity will likely benefit from economies of scale, potentially leading to cost synergies and improved profitability. The preservation of both brands suggests a strategy to maintain market share across different customer segments.
From an investor's perspective, this merger could lead to increased market competitiveness and potentially higher revenues for the combined entity. However, the success of this merger will depend on effective integration and management of the two brands. The appointment of executives from both companies to leadership roles is a positive sign for a smooth transition. Investors should monitor post-merger performance metrics and any potential market share gains in the coming quarters.
This merger creates a powerhouse in the residential lighting market, combining two well-established brands with over a century of history each. The move is likely to reshape the competitive landscape, potentially putting pressure on other players in the industry. The expanded product catalog and multi-channel distribution strategy position the new entity to capitalize on various market segments, from homebuilders to e-commerce.
The timing of this acquisition is interesting, given the current housing market dynamics. With potential shifts in housing demand and construction activity, a diversified product portfolio and distribution network could provide resilience. Investors should watch for any changes in market share across different sales channels and how the combined entity leverages its expanded capabilities to address evolving consumer preferences in home lighting solutions.
The go-forward management team is made up of legacy Progress and Kichler executives. Sean Veit, former Progress Chief Executive Officer, will serve as Chief Executive Officer of the combined company, and Vijay Shankar, former Kichler President, will serve as Executive Chairman. Both Sean and Vijay will serve on the company’s Board of Directors.
“This merger marks an exciting milestone for our customers, employees, and other key stakeholders. We are thrilled to be able to support our customers with an expanded portfolio of high-quality lighting solutions and enhanced service capabilities,” said Sean. “With this merger, we look forward to preserving and enhancing the distinct positioning that the Progress and Kichler brands hold in the market.”
Vijay added, “We are very excited about bringing these great brands and organizations together. The combined talent and resources will position us to better serve our customers. Our leadership team looks forward to working thoughtfully through the integration to ensure that our customers are the greatest beneficiaries of this combination.”
"We look forward to supporting Sean, Vijay, and the rest of the team as they work to build a leading platform in the residential lighting industry,” said Michael Niegsch, Partner at Kingswood. “The combination of the Progress and Kichler brands provides the business with unique, complementary strengths across all channels and end markets.”
Configure Partners served as financial advisors, and McDermott Will & Emery served as legal counsel to Kingswood. Lincoln International, Davis Polk & Wardwell, and Baker Botts advised Masco Corporation.
About Kichler Lighting LLC
Kichler Lighting LLC strives to transform the home and workspace by developing fixtures that perform efficiently, install intuitively and deliver an overall effect that combines style with purpose. With an extensive portfolio of more than 3,000 on-trend products - including lighting, landscape and ceiling fans - and a commitment to providing services and project solutions, Kichler® is the brand homeowners and professionals have known and have trusted since 1938. Kichler Lighting products are available at independent showrooms, Lowe's, The Home Depot, electrical and landscape distributors and online. For more information, visit www.kichler.com.
About Progress Lighting, LLC
Progress Lighting is a leading source for residential and light commercial decorative lighting solutions with thousands of fixture designs to meet the needs of any project. With over a century of lighting technology, leadership and engineering, Progress Lighting offers the highest quality lighting products and solutions that deliver aesthetic appeal, stellar performance, easy installation, and value to the residential new construction and renovation & remodel end markets. For more information, please refer to the Progress Lighting website at www.progresslighting.com.
About Kingswood Capital Management, LP
Kingswood Capital Management, LP partners with leading companies in the middle market which stand to benefit from its capital and extensive operating resources. Kingswood embraces complexity and believes it is well-positioned to support businesses at inflection points in their development to enhance value. Based in
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Shannon Powers
media@kingswood-capital.com
Source: Kingswood Capital Management, LP
FAQ
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