Hubbell sells residential lighting business to Kingswood Capital Management for $131m

Hubbell has agreed to sell its residential lighting business, Progress Lighting, to Kingswood Capital Management for a cash deal of $131 million. This business segment deals in indoor and outdoor lighting solutions and is expected to hit sales of around $190 million in 2023.

Transaction snapshot

  • Deal value: $131 million
  • Deal type: Acquisition
  • Revenue multiple: 0.69x

Hubbell's CEO, Gerben Bakker said the sale aligns with the company's strategy to focus on areas with strong growth and profit margins, particularly in grid modernisation and electrification.

Under Kingswood's ownership, Progress Lighting aims to become more agile and responsive to customer needs and design trends. Sean Veit, continuing as CEO, looks forward to the growth opportunities this new partnership will bring.

Progress Lighting has a wide distribution network across the US and Canada, serving homebuilders, lighting showrooms, electrical contractors, and Ecommerce retailers.

Michael Niegsch, a Partner at Kingswood, commended Progress Lighting's long-standing reputation and its diverse product range. Kingswood plans to invest in the company's growth, focusing on the residential new construction and renovation markets.

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