While private equity has been steadily absorbing major players in the residential lighting industry, it typically does so quietly with no corporate name changes. However, last week Kingswood Capital – which acquired Progress Lighting and more recently Kichler – announced a new parent company name to encompass the Kichler and Progress organization: Coleto Brands.
This statement from Coleto Brands Executive Chairman Vijay Shankar could be a hint that perhaps there might be other companies joining the fold. Shankar said, “I’ve been so impressed with how the newly combined team has come together in such a short time to begin realizing the potential this merger offers. The swift yet thoughtful approach the leadership team has taken is a testament to the high caliber talent and customer-centric cultures that existed in each organization and that will form the backbone for the new Coleto Brands going forward.”
The new corporate name is the latest in a series of steps Kingswood has been making to bring the two iconic lighting companies together. While both brands will operate as part of the same corporation, each will continue as independent brands in the market in complement to one another.
“Since the opportunity arose to bring these two formidable brands together, we’ve been excited about the combined impact we can have for our customers, trade professionals, end consumers and employees,” stated Sean Veit, Coleto Brands CEO. “Both brands have rich legacies, strong industry relationships, exceptional product portfolios and recognized commitment to customer service with highly complementary strengths that will enable us to deliver more compelling solutions to the market.”
Since its Kichler acquisition officially closed in September, Kingswood Capital has been working to align infrastructure and identify opportunities to streamline operations. First, a new executive leadership team was announced — with both Veit and Shankar sharing leadership responsibilities for their respective brands. Next, Kingswood decided that both brands will be represented by a singular rep agency sales force with the goal of being able to consolidate orders, invoices, and shipments.
To further emphasize the partnership between the dual brands, the Progress Lighting showroom in the Dallas Market Center included a Kichler area in time for last week’s Lightovation show.
The Coleto Brands name was inspired by starling (birds), which reportedly come together to create patterns in the sky known as a murmuration. Kingswood Capital explained, “In a similar way, the brands within the Coleto Brands portfolio are distinct, yet move synchronously together to have a dynamic, positive impact on the lighting industry.”
