Signify Reaches Agreement To buy the lighting Business from Eaton
Signify, formerly known as Philips Lighting, has announced that it will acquire Cooper Lighting Solution from Eaton Corp. for 1.4billion USD in cash. Signify said the acquisition will strengthen its market position in North America. Signify said late Tuesday that the deal is expected to close in the first quarter of 2020 subject to regulatory approval.
“Today’s announcement confirms the strategic importance of the North American market for Signify. This acquisition will substantially strengthen our position in this attractive market. We will join forces to further develop connected lighting and provide our customers with the highest level of service while optimizing operational efficiencies.” [Quote attributed to Eric Rondolat, CEO of Signify.]
Cooper, headquartered in Peachtree City, Georgia, sells professional lighting systems. It had sales last year of $1.7 billion. Eaton has acquired Cooper Industries for $11.8 billion in December 2012. Eaton’s Lighting business is one of the powerful American’s leading providers of LED lighting and control solutions. Eaton mainly serves customers in commercial, industrial, residential and municipal markets.
The two companies will retain separate front offices and work together to tap into the growing market for professional lighting and increasing switch to LED lighting.
Upon closing of the acquisition, Signify will generate over 50% of its sales in the Professional segment, increasing the revenue base for its growing profit engines from EUR 4.9 billion to EUR 6.4 billion. The proportion of sales generated in the Americas increases from 28% to 40%.