Signify, the lighting behemoth formerly known as Philips Lighting and headquartered in the Netherlands, has announced its intention to acquire Cooper Lighting Solutions from Eaton for USD 1.4 billion in cash. Closing is subject to regulatory approvals and other customary conditions and is expected to take place in the first quarter of 2020.
The move is part of strategic plan to strengthen Signify’s market positions in North America, with increased innovation power and more competitive offering. According to the company, the purchase is estimated to improve Signify’s business mix with Professional revenues increasing from 42 to 53 percent of total sales.
There are no planned changes to the sales rep networks and front office functions will continue to operate independently.
Cooper Lighting Solutions, headquartered in Peachtree City, Ga. – whose brands include Corelite, Halo, McGraw-Edison, and Metalux – had been acquired by Eaton in 2012.
“Today’s announcement confirms the strategic importance of the North American market for Signify. This acquisition will substantially strengthen our position in this attractive market,” says Eric Rondolat, CEO of Signify. “We look forward to welcoming the team from Cooper Lighting. They have built a high-performance company based on professionalism, truly innovative offers, and a long and strong relationship with their customers. We share a genuine passion and single focus for lighting and a successful track record in innovation. We will join forces to further develop connected lighting and provide our customers with the highest level of service while optimizing operational efficiencies.”
It is Signify’s intention that together the two businesses will be better positioned to benefit from the growing USD 12 billion professional lighting market in North America, driven by the continued conversion to LED and the increased demand for connected lighting systems and controls.
To current customers of both businesses, operations will remain relatively the same. Signify and Cooper Lighting will maintain separate front offices: sales forces, agent networks, product and brand portfolios, marketing and product development teams.