Hubbell to sell C&I lighting business to GE Current for $350m
Hubbell Incorporated, a US-based manufacturer of utility and electrical solutions, has agreed to divest its commercial and industrial (C&I) lighting business to GE Current for $350 million in cash.
GE Current is a US-based energy management systems provider owned by Daintree.
The business being acquired by it is engaged in designing, manufacturing, and selling LED lighting and control solutions for commercial as well as industrial customers. Based in Greenville, South Carolina, the business registered nearly $515 million in sales last year.
The Hubbell C&I lighting business provides professional lighting, lighting controls, as well as connected lighting. It is said to offer a variety of indoor and outdoor lighting products.
Some of its brands include Area Architectural Lighting, Litecontrol, Beacon, Kim, Columbia, Dual-Lite, Prescolite, Alera, Compass, Hubbell Controls Solutions, and Hubbell Outdoor Lighting.
Hubbell Incorporated to sell commercial and industrial lighting business to GE Current for $350m. Photo courtesy of Sureskrishnas/Wikipedia.org.
Gerben Bakker — Chairman, President, and CEO of Hubbell Incorporated said: “This strategic transaction creates a more focused Hubbell portfolio with higher growth and margin characteristics, and enables us to continue effectively executing on our core strategy of providing reliable and efficient critical infrastructure solutions for Electrical and Utility applications.
“We are confident that Current is the right strategic partner for the business, and that the combination of these two leading businesses with complementary product portfolios will be a win for customers, channel partners, employees and shareholders.”
Hubbell Incorporated plans to use the net proceeds from the divestiture to accretive bolt-on acquisitions as well as share repurchases.
Through the acquisition, GE Current hopes to build a premier end-to-end lighting solutions business.
Manish Bhandari — CEO of GE Current said: “Today’s announcement is a win for the industry, combining two leading companies with over 150 years of innovation. We intend to use our combined resources to drive new investments that create solutions for the continuously evolving needs of our customers.
“The values and customer-centric culture of the Hubbell C&I lighting business are well aligned with Current. We look forward to welcoming the Hubbell C&I team.”
Upon completion of the deal, GE Current and the Hubbell C&I Lighting business will have separate agency networks with exclusive resources and distinct brands.
The deal, which is subject to regulatory approvals and other customary closing conditions, is anticipated to close in Q1 2022.