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Acuity Brands Boosts Product Offering With WhiteOptics Buyout

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Acuity Brands, Inc. (AYI - Free Report) has acquired WhiteOptics, L.L.C., a New Castle, DE-based manufacturer of advanced optical components. With this acquisition, Acuity Brands aims at expanding its offering of optical materials to further boost the performance of commercial and architectural products. However, financial details of the transaction are still kept under wraps.

How WhiteOptics Buyout Will Help Acuity Brands?

WhiteOptics’ product portfolio comprises light guide plates, optical diffusers and innovative micro-structure lenses. These products provide a unique three-dimensional appearance. Again, WhiteOptics’ transmissive products include optics that help in enhancing the quality of light to support a favorable Unified Glare Rating (“UGR”), and superior luminaire efficiency and energy savings.

WhiteOptics’ innovative materials and processing technology will enable Acuity Brands to increase its offering of unique and advanced designs for customers. This buyout is not expected to materially impact Acuity Brands’ fiscal 2019 performance.

Acuity Brands’ diversified portfolio of innovative lighting control solutions and energy-efficient luminaries bode well. In fiscal 2018, Acuity Brands introduced almost 100 new product families to its industry-leading portfolio, gaining market share in product categories and sales channels. Its tier 3 and 4 solutions grew more than 30% during the fiscal second quarter. Notably, Acuity Brands’ Atrius-based IoT luminaires and solutions in the retail segment are becoming the industry standard. The company remains focused on expanding these solutions in other channels as well.

Acquisitions – A Key Growth Strategy

Acuity Brands, which shares space with Orion Energy Systems, Inc. (OESX - Free Report) , Energy Focus, Inc. (EFOI - Free Report) and LSI Industries Inc. (LYTS - Free Report) in the Zacks Building Products - Lighting industry, has been expanding geographic borders and product portfolio through acquisitions and joint ventures. Notably, acquisitions, net of divestitures, added 1% to its total revenues in first-half fiscal 2019.

In fiscal 2018, the company spent $163 million for acquisitions, namely Lucid Design Group and IOTA Engineering. During the same period, the company acquired IOTA, the industry leader in emergency lighting and power equipment for commercial and institutional applications. This acquisition enhanced its market leadership in this important lighting category.

Share Price Performance

This Zacks Rank #3 (Hold) stock has outperformed the industry year to date. Acuity Brands’ leading market position, diversified portfolio of innovative lighting control solutions and energy-efficient luminaries are substantial growth drivers. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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