LSI Industries Inc (NASDAQ: LYTS) disclosed that it has inked an acquisition agreement to purchase privately-held JSI Store Fixtures (JSI) from RFE Investment Partners. The firm has bought JSI for a cash buying price of $90 million. JSI has gained recognition as the prominent provider of retail commercial display solutions throughout North America.
JSI is the great choice of LSI Industries as it has an attractive track record of growth and modernization, appealing margin profile and trustworthy customer following within the supermarket, convenience, and specialty store verticals are highly harmonizing to the current portfolio of lighting and graphics solutions of LSI.
This acquisition is beneficial for LSI industries as this buying will grow the market reach of LSI Industries and also grows the total addressable markets within the grocery and convenience store verticals of LSI. Furthermore, it will also offer eloquent revenue collaborations across its shared product portfolio. Moreover, it is also in line with its long-term strategic focus.
The firm disclosed that with the introduction of its lighting and graphics businesses, the corresponding business of JSI will also offer the same value to the firm. The firm has set the target of $500 million in yearly sales and $50 million in yearly Adjusted EBITDA by year-end fiscal 2025.
Additionally, it has been disclosed that in the full year calendar 2020, JSI has recorded the total revenue and Adjusted EBITDA of nearly $70 million and $10 million, respectively. It results in an Adjusted EBITDA margin over LSI’s irregular twelve-month corporate average. After the execution of the deal, it will be instantly profitable to LSI on an adjusted earnings per share basis.