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Kingswood Capital Management Acquires Progress Lighting, Marking a Significant Milestone in the Brand's 117-Year History

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Kingswood Capital Management acquires Progress Lighting from Hubbell Incorporated, forming a partnership with existing management. Progress Lighting focuses on residential and light commercial decorative lighting solutions. The acquisition aims to enhance the company's focus, agility, and customer service. Kingswood plans to invest in the business for continued growth in the residential lighting sector.
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The acquisition of Progress Lighting by Kingswood Capital Management represents a strategic move in the residential and light commercial decorative lighting market. The transaction indicates a consolidation trend within the industry, which is highly fragmented. This acquisition may lead to increased market share and competitive advantages for Progress Lighting, especially if Kingswood invests in innovation and expansion.

By partnering with the company's existing management, Kingswood shows a commitment to continuity and leveraging existing relationships and expertise. This synergy could result in operational efficiencies and improved customer service, potentially increasing the company's value proposition in the market. Investors should monitor the company's performance metrics post-acquisition, such as sales growth, market penetration and customer retention rates, to gauge the success of the integration.

The financial implications of this acquisition could be significant for Hubbell Incorporated's portfolio management. The divestiture of Progress Lighting allows Hubbell to streamline its focus and potentially redeploy capital into its core business areas or new strategic initiatives. For Kingswood, the acquisition is a capital allocation decision that could enhance their portfolio's diversity and profitability.

Investors should consider the acquisition's impact on Hubbell's financial statements, looking for changes in liquidity, debt levels and earnings. For Kingswood, evaluating subsequent financial reports will be crucial to understand the return on investment and how the acquisition contributes to their earnings. The deal may also affect the stock market's perception of both entities, influencing stock prices based on the market's reaction to the growth prospects and strategic fit of the acquisition.

The emphasis on manufacturing design-forward, energy-efficient products aligns with global sustainability trends and increasing consumer demand for environmentally friendly options. Progress Lighting's commitment to energy efficiency could enhance its brand image and appeal to a growing segment of eco-conscious consumers.

Investors with an interest in sustainable and responsible investments might view this acquisition favorably if Kingswood continues to support and expand upon Progress Lighting's sustainability initiatives. Long-term, this focus on energy-efficient products could result in cost savings, government incentives and a stronger market position as regulations and consumer preferences shift towards sustainability.

LOS ANGELES, Feb. 12, 2024 /PRNewswire/ -- Kingswood Capital Management, LP (together with its affiliates, "Kingswood") announced today that it has acquired Progress Lighting, LLC ("Progress Lighting" or the "Company") from Hubbell Incorporated (NYSE: HUBB). Progress Lighting is a leading source for residential and light commercial decorative lighting solutions. As part of the transaction, Kingswood has partnered with the Company's existing management team.  

Sean Veit, who will continue to lead the Company and has assumed the title of Chief Executive Officer, commented, "We look forward to the partnership with Kingswood and the support they will provide as we transition to a standalone business. Going forward as an independent company, we will be even more focused and nimble in reacting to the product and service needs of our customers and the design trends in the marketplace. I am excited for all our employees as we embark on this next phase as a company."       

Headquartered in Greenville, SC, Progress Lighting has distribution centers located throughout the country that support one of the largest networks of homebuilders, lighting showrooms, electrical contractors, home centers, and ecommerce retailers in the United States and Canada. The Company is committed to manufacturing design forward energy efficient products while educating individuals on new trends and options available in lighting.

"Progress Lighting's century-long brand reputation, diverse catalog across a range of styles, product types, and price points, and world-class, hands-on customer service and product availability position it well for continued growth in the highly fragmented residential lighting sector," said Michael Niegsch, Partner of Kingswood. "We look forward to investing in the business and working closely with Sean Veit and the rest of the Progress Lighting team to better serve its customers in both the residential new construction and renovation & remodel end markets."      

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 is a private investment firm primarily focused on investing in businesses in transition. In addition to access to capital, Kingswood brings relevant industry relationships and a broad network of internal and external operating resources that can strengthen the businesses it partners with and enhance value. Kingswood has extensive experience with complex transactions where it provides tailored solutions that balance the objectives of all constituents. For more information, please refer to the Kingswood website at www.kingswood-capital.com

Cision View original content:https://www.prnewswire.com/news-releases/kingswood-capital-management-acquires-progress-lighting-marking-a-significant-milestone-in-the-brands-117-year-history-302059518.html

SOURCE Kingswood Capital Management, LP

Kingswood Capital Management, LP acquired Progress Lighting from Hubbell Incorporated.

Sean Veit will lead Progress Lighting and has assumed the title of Chief Executive Officer.

Progress Lighting is headquartered in Greenville, SC.

Progress Lighting is known for being a leading source for residential and light commercial decorative lighting solutions.

Progress Lighting's distribution centers support a network of homebuilders, lighting showrooms, electrical contractors, home centers, and ecommerce retailers in the US and Canada.
Hubbell Inc.

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About HUBB

hubbell incorporated is an international manufacturer of quality electrical and electronic products for a broad range of residential and non-residential construction, industrial and utility applications. with 2019 revenues of $4.6 billion, hubbell incorporated operates manufacturing facilities in the united states and around the world. the corporate headquarters is located in shelton, ct.