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CINCINNATI - LSI Industries Inc. (NASDAQ:LYTS), a prominent manufacturer of commercial lighting and display solutions with annual revenues of $688.88 million, has announced the purchase of Canada’s Best Holdings, known as Canada’s Best Store Fixtures (CBSF), for a total of USD $31.0 million in an all-cash transaction that includes a $7.0 million performance-based earnout. This strategic move aims to broaden LSI’s reach across its core vertical markets in North America. According to InvestingPro analysis, LSI currently appears fairly valued based on its Fair Value assessment.
Canada’s Best Holdings, headquartered in Ontario, is a leader in providing retail fixtures and custom store design solutions. The acquisition is expected to be immediately beneficial to LSI’s margin rate and earnings per share. With a current EBITDA of $56.7 million and a debt-to-equity ratio of 1.48, LSI funded the acquisition through available cash and its $100 million credit facility, with an anticipated net debt to adjusted EBITDA ratio of 1.1x post-closing.
LSI’s President and CEO, James A. Clark, highlighted the acquisition as a significant step consistent with the company’s multi-year growth plan, "Fast Forward." He emphasized the alignment between LSI and CBH’s business models, technical expertise, and customer relationships. The company’s financial health score of 2.9 (rated as GOOD) by InvestingPro suggests strong fundamentals supporting this strategic move. Subscribers can access 12 additional ProTips about LSI’s growth potential and market position.
The acquisition marks LSI’s third in the custom display solutions market in four years, following the purchases of JSI Store Fixtures in 2021 and EMI Industries in 2024. LSI believes the combination of these entities positions it as a market leader capable of serving multinational clients.
CBH’s inclusion in LSI’s portfolio is expected to boost its Canadian market presence and synergize with LSI’s existing customer base. CBH’s leadership team will remain intact, and its 120 employees will join LSI, maintaining CBH as an independent brand within LSI’s display solutions segment.
LSI remains focused on profitable growth, operational rigor, and disciplined capital allocation, with an eye on expanding its market in the coming years. With a current ratio of 0.97 and steady revenue growth, the company maintains a solid financial foundation for future expansion. The company will host a conference call on Wednesday at 9 a.m. ET to discuss the acquisition details and answer questions.
This acquisition is reported based on a press release statement.
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