The former Philips Lighting business based in the Netherlands has agreed to purchase Peachtree City-based Cooper Lighting for $1.4 billion.
Eindhoven-based Signify, which the company has been called since 2018, said the acquisition of Cooper from Eaton Corp. would strengthen its position in North America, particularly in the professional space, as well as in the LED segment that makes up the bulk of Cooper’s business.
Some 84 percent of the $1.7 billion in Cooper’s 2018 sales were LED-based; the company provides lighting, controls and connected lighting under multiple brands and posted $187 million in pre-tax profits last year, Signify said in a news release.
The combination is expected to save the companies $60 million per year and add percentage growth in the mid-teens to earnings per share by next year. It will increase the ratio of Signify’s sales in the Americas from 28 to 40 percent.
The Dutch firm’s announced plans may bode well for the continuity of Cooper’s local operations. According to Signify, the two companies will maintain “separate front offices: sales forces, agent networks, product and brand portfolios, marketing and product development teams. Both businesses will be able to strengthen their respective product portfolios, benefitting from an increased power of innovation as well as more competitive and cost-efficient offerings.”
Global Atlanta has inquired as to the deal’s potential impact on local staffing levels and will update this article once a response is received.
The closing is subject to regulatory approvals and is expected to take place during the first quarter of 2020.
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