LSI Industries Inc. Announces Agreement to Sell New York Manufacturing Facility
17 April 2019 - 5:43PM
LSI Industries Inc. (NASDAQ: LYTS) today
announced that the company has entered into a definitive agreement
to sell its manufacturing facility in New Windsor, New York.
The company previously announced the closure of the New York
facility on October 29, 2018. The facility manufactures
indoor lighting products and production is being transferred to the
Company’s Independence, Kentucky and Blue Ash, Ohio
facilities.
Under terms of the agreement, the company will
receive approximately $12 million in gross proceeds related to the
sale of the New York facility. In addition, the Company
expects to generate approximately $4 million in annualized cost
savings resulting from improved operating efficiencies. The
transaction is expected to close on or before June 30, 2019,
subject to final approval from the town leaders of New Windsor, New
York.
“The sale of the New York facility is an important
strategic step forward, one that improves operating efficiency,
streamlines our supply chain and reduces fixed costs by an
estimated $4 million annually,” stated Jim Clark, President and CEO
of LSI Industries. “The cash proceeds resulting from the
asset sale position us to reduce leverage while continuing to
pursue targeted, accretive investments that support long-term
growth of the business.”
About LSI Industries, Inc.
LSI Industries Inc. is a U.S.-based manufacturer of
lighting, graphics and technology solutions for both indoor and
outdoor applications. We are a leading solutions provider to
the primary end-markets we serve, including petroleum, automotive,
quick serve restaurants, grocery, banking, retail, renovation,
parking and warehousing. Our products are marketed throughout
North America through a network of independent sales
representatives and distributors, as well as through national
accounts. We partner with our customers to provide a full
range of design support, engineering, installation and project
management services. Headquartered in Blue Ash, Ohio, LSI
currently employs over 1,200 employees and operates seven
facilities throughout the United States.
Forward-Looking Statements
For details on the uncertainties that may cause our actual
results to be materially different than those expressed in our
forward-looking statements, visit http://www.lsi-industries.com/fls
as well as our Annual Reports on Form 10-K and Quarterly Reports on
Form 10-Q which contain risk factors.
Additional note: Today’s news
release, along with past releases from LSI Industries, is available
on the Company’s internet site at www.lsi-industries.com.
Company Contact
Noel Ryan 513.372.3012 IR@LSI.com
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