Making a bold move into the lighting market, Square D Co., a unit of France’s Schneider Electric, has agreed to buy Juno Lighting Inc., for $610 million. The sale price includes about $200 million of assumed debt.
While Square D has lighting controls systems in its distribution equipment offering, the acquisition is Square D’s first foray into the lighting fixtures business. The company would continue to operate as an independent business, reporting to Dave Petratis, executive vice president, Schneider Electric North American operating division.
Juno, which has about 1,000 employees, reported earnings of $16.2 million on sales of $242 million in fiscal 2004. The company makes lighting fixtures for commercial, institutional and residential buildings, and also makes showcase lighting fixtures, fiber-optic lighting products, and emergency and exit lighting signs.
Juno has 10 assembly and or warehousing facilities throughout the country. It does 65 percent of its business in recess lighting, 30 percent in track lighting and 5 percent in other lighting fixtures.
Juno sells its products through more than 2,100 distributors of lighting products located throughout the United States and Canada.
Dave Petratis, executive vice president, Schneider Electric North American Operating Division, said, “This acquisition clearly signals our commitment to extend our offering in the U.S. market. The addition of Juno is a perfect fit and a great complement to our core business in North America, targeting residential, commercial and retail construction. Our business models and channels to market are complementary. The Juno reputation for quality, service and operating performance is unparalleled. We look forward to working with the Juno team to exceed the needs of our mutual customers.”
Bob Fiorani, vice president, communication for Schneider Electric North American operating division, said the acquisition is a “U.S. market play.” “From a global perspective, it is not one of our strategic growth platforms worldwide,” he said. “But in the U.S. market with the kind of economy and market dynamics that are occuring right now, coupled with the channel to the market of Square D and the strength of our distributors and the common customers — electrical contractors and the residential and commerial buildings market — it’s just a natural play.”