SHELTON, Conn. — Hubbell Incorporated, the electric products manufacturer that owns Progress Lighting, announced today that it has made a definitive agreement to sell its residential lighting business to the private equity firm Kingswood Capital Management for $131 million in cash.
The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2024.
The residential lighting business sells indoor and outdoor lighting solutions and is expected to generate approximately $190 million in sales in 2023.
“We look forward to partnering with Kingswood to build upon Progress Lighting’s 117-year history of delivering exceptional decorative lighting solutions to the market,” said Sean Veit, vice president and general manager of Progress Lighting on the company’s LinkedIn page. “We see substantial opportunity with Kingswood’s support to further enhance our customer experience while continuing to deliver on-trend products and extraordinary service.”
“This transaction reflects our ongoing strategy to create a focused portfolio with attractive growth and margin characteristics,” said Gerben Bakker, Hubbell Chairman, President and CEO. “Hubbell’s portfolio is strategically aligned around grid modernization and electrification megatrends, and our leading positions across the energy infrastructure will enable us to continue effectively serving utility and electrical customers in front of and behind the meter. I would like to thank our Residential Lighting colleagues for their many contributions to Hubbell.”
Kingswood Capital Management could not be immediately reached for comment.