LSI Industries Inc. (NASDAQ: LYTS), a prominent manufacturer of commercial lighting and displays in the U.S., has officially announced its acquisition of the privately-owned EMI Industries for a cash transaction valued at $50 million.

This acquisition enhances LSI’s capabilities in the display solutions sector, particularly within the grocery, convenience store, and restaurant markets.

EMI Industries, based in Florida, is renowned for its award-winning craftsmanship in metal and woodwork, producing both standard and bespoke fixtures, displays, and food equipment tailored for the convenience store, grocery, and restaurant sectors.

EMI’s clientele is diverse and well-established, ranging from regional to national and international brands, with hundreds to thousands of locations. The company operates out of five manufacturing sites across the U.S.

James A. Clark, President and CEO of LSI Industries, expressed that the acquisition of EMI is a strategic expansion of their product and service offerings in retail fixtures, displays, and food equipment.

This move aligns with LSI’s ‘Fast Forward’ strategy, aiming to leverage the multi-year investment trends in the grocery, refueling/convenience store, and restaurant sectors.

Clark highlighted the synergistic potential of merging LSI’s and EMI’s products, services, and technologies, which presents substantial opportunities for cross-selling and positions LSI as a comprehensive provider to an expanded customer base in North America. He emphasized that this merger is a significant advancement in LSI’s mission to serve a growing list of national retail chains that seek integrated, quality-driven solutions backed by extensive technical expertise.

Clark also noted EMI’s reputation for excellence in fixtures and equipment and shared his enthusiasm for integrating EMI’s customer-focused ethos with LSI’s commitment to performance excellence. He welcomed EMI’s 300-plus employees and leadership team into the LSI family.

Alan Harvill, President and CEO of EMI, remarked on LSI’s established track record of growth and value creation, expressing pride in joining the LSI team and the potential that the merger holds.

In conclusion, Clark stated that LSI’s ‘Fast Forward’ strategic plan aims to increase net sales by over 60% from fiscal year 2023 to fiscal year 2028, with acquisitions playing a significant role in this growth. LSI will continue to pursue leadership in high-value market segments, expanding its reach and enhancing its solutions-based platform to generate long-term shareholder value.

For the calendar year 2023, EMI reported revenues and adjusted EBITDA of approximately $87.0 million and $5.5 million, respectively. The acquisition is expected to have an immediate positive impact on LSI’s adjusted earnings per share.

The purchase of EMI was financed through LSI’s cash reserves and its existing line of credit.