Kingswood Capital Management, LP (together with its affiliates, “Kingswood”) announced today that it has acquired Kichler Lighting, LLC (“Kichler”) from Masco Corporation (NYSE: MAS). Kingswood will merge Kichler with its portfolio company, Progress Lighting, LLC (“Progress”) to create one of North America’s leading residential lighting platforms featuring complementary, industry-recognized brands. The combined company will benefit from expanded distribution and service capabilities and a robust product catalog that is well positioned to serve customers across the homebuilder, trade, showroom, retail, and ecommerce sales channels. The company’s go-to-market strategy will feature both the Progress and Kichler brands, which were founded in 1906 and 1938 respectively.
The go-forward management team is made up of legacy Progress and Kichler executives. Sean Veit, former Progress Chief Executive Officer, will serve as Chief Executive Officer of the combined company, and Vijay Shankar, former Kichler President, will serve as Executive Chairman. Both Sean and Vijay will serve on the company’s Board of Directors.
“This merger marks an exciting milestone for our customers, employees, and other key stakeholders. We are thrilled to be able to support our customers with an expanded portfolio of high-quality lighting solutions and enhanced service capabilities,” said Sean. “With this merger, we look forward to preserving and enhancing the distinct positioning that the Progress and Kichler brands hold in the market.”
Vijay added, “We are very excited about bringing these great brands and organizations together. The combined talent and resources will position us to better serve our customers. Our leadership team looks forward to working thoughtfully through the integration to ensure that our customers are the greatest beneficiaries of this combination.”
"We look forward to supporting Sean, Vijay, and the rest of the team as they work to build a leading platform in the residential lighting industry,” said Michael Niegsch, Partner at Kingswood. “The combination of the Progress and Kichler brands provides the business with unique, complementary strengths across all channels and end markets.”
Configure Partners served as financial advisors, and McDermott Will & Emery served as legal counsel to Kingswood. Lincoln International, Davis Polk & Wardwell, and Baker Botts advised Masco Corporation.
About Kichler Lighting LLC
Kichler Lighting LLC strives to transform the home and workspace by developing fixtures that perform efficiently, install intuitively and deliver an overall effect that combines style with purpose. With an extensive portfolio of more than 3,000 on-trend products - including lighting, landscape and ceiling fans - and a commitment to providing services and project solutions, Kichler® is the brand homeowners and professionals have known and have trusted since 1938. Kichler Lighting products are available at independent showrooms, Lowe's, The Home Depot, electrical and landscape distributors and online. For more information, visit www.kichler.com.
About Progress Lighting, LLC
Progress Lighting is a leading source for residential and light commercial decorative lighting solutions with thousands of fixture designs to meet the needs of any project. With over a century of lighting technology, leadership and engineering, Progress Lighting offers the highest quality lighting products and solutions that deliver aesthetic appeal, stellar performance, easy installation, and value to the residential new construction and renovation & remodel end markets. For more information, please refer to the Progress Lighting website at www.progresslighting.com.
About Kingswood Capital Management, LP
Kingswood Capital Management, LP partners with leading companies in the middle market which stand to benefit from its capital and extensive operating resources. Kingswood embraces complexity and believes it is well-positioned to support businesses at inflection points in their development to enhance value. Based in Los Angeles, Kingswood is a cohesive, entrepreneurial team with a long history of shared success developing “win-win” partnerships with its portfolio companies and management teams. For more information, please refer to the Kingswood website at www.kingswood-capital.com.
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Contacts
Shannon Powers
media@kingswood-capital.com
