Hubbell – Hubbell Announces Sale of Residential Lighting Business
Shelton, CT, Dec. 21, 2023 (GLOBE NEWSWIRE) — Hubbell Incorporated (NYSE: HUBB) today announced the execution of a definitive agreement to sell its Residential Lighting business to Kingswood Capital Management, LP, for a cash purchase price of $131 million, subject to customary adjustments.
The business sells indoor and outdoor lighting solutions and is expected to generate approximately $190 million in sales in 2023.
“This transaction reflects our ongoing strategy to create a focused portfolio with attractive growth and margin characteristics,” said Gerben Bakker, Chairman, President and Chief Executive Officer. “Hubbell’s portfolio is strategically aligned around grid modernization and electrification megatrends, and our leading positions across the energy infrastructure will enable us to continue effectively serving utility and electrical customers in front of and behind the meter. I would like to thank our Residential Lighting colleagues for their many contributions to Hubbell.”
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2024.
SourceHubbell
EMR Analysis
More information on HUBBELL: See the full profile on EMR Executive Services
More information on Gerben W. Bakker (Chairman, President and Chief Executive Officer, HUBBELL): See the full profile on EMR Executive Services
More information on William R. Sperry (Executive Vice President and Chief Financial Officer, HUBBELL): See the full profile on EMR Executive Services
More information on Greg Gumbs (President, Utility Solutions Segment, Hubbell): See the full profile on EMR Executive Services
More information on Kingswood Capital Management, LP: https://www.kingswood-capital.com/ + Kingswood Capital is a private investment firm primarily focused on businesses that are undergoing varying degrees of operational, financial or market-driven change. In addition to access to capital, we bring relevant industry relationships and a broad network of internal and external operating resources that can strengthen the business and enhance value.
Based in Los Angeles, we are a cohesive team of senior professionals from industry leading private equity firms with a history of success. We have extensive experience with complex transactions and difficult situations, where we provide tailored solutions that ensure the best outcome for all constituents.
More information on Alexander Wolf (Managing Partner, Kingswood Capital Management, LP): https://www.kingswood-capital.com/team/ + https://www.linkedin.com/in/alex-wolf-bb396340/
More information on Progress Lighting – Lighting & Controls by Kingswood Capital Management, LP: https://www.hubbell.com/progresslighting/en + Progress Lighting is committed to manufacturing award-winning energy efficient products while educating individuals on new options available in solid-state lighting. With over a century of lighting technology, leadership and engineering, Progress Lighting offers the highest quality in residential and commercial lighting solutions bringing products that deliver aesthetic appeal, stellar performance, easy installation and value to the designer marketplace.
Our lighting fixtures reflect artistic influence, on trend elements and details to contribute to affordable luxury for the home. The collections found throughout the our Design Series have become the statement, the art piece and the focal point – contributing to an overall luxurious experience in the home.
Headquartered in Greenville, S.C., Progress Lighting has distribution centers located throughout the country that support one of the largest networks of lighting showrooms, electrical builders, home centers and home builders in the United States and Canada.
The business sells indoor and outdoor lighting solutions and is expected to generate approximately $190 million in sales in 2023.
EMR Additional Notes:
- Grid, Microgrids and DERs:
- The power grid is a network for delivering electricity to consumers. The power grid includes generator stations, transmission lines and towers, and individual consumer distribution lines.
- The grid constantly balances the supply and demand for the energy that powers everything from industry to household appliances.
- Electric grids perform three major functions: power generation, transmission, and distribution.
- A microgrid is a small-scale power grid that can operate independently or collaboratively with other small power grids. The practice of using microgrids is known as distributed, dispersed, decentralized, district or embedded energy production.
- Smart Grid is any electrical grid + IT at all levels . Micro Grid is a group of interconnected loads and DERs (Distributed energy resources) within a clearly defined electrical and geographical boundaries witch acts as a single controllable entity with respect to the main grid.
- Distributed energy resources (DERs) are small-scale electricity supply (typically in the range of 3 kW to 50 MW) or demand resources that are interconnected to the electric grid. They are power generation resources and are usually located close to load centers, and can be used individually or in aggregate to provide value to the grid.
- Common examples of DERs include rooftop solar PV units, natural gas turbines, microturbines, wind turbines, biomass generators, fuel cells, tri-generation units, battery storage, electric vehicles (EV) and EV chargers, and demand response applications.
- Distributed energy resources management systems (DERMS) are platforms which helps mostly distribution system operators (DSO) manage their grids that are mainly based on distributed energy resources (DER).
- DERMS are used by utilities and other energy companies to aggregate a large energy load for participation in the demand response market. DERMS can be defined in many ways, depending on the use case and underlying energy asset.