CORE Industrial Partners has acquired Fleco Industries, a designer and manufacturer of lighting products.
Fleco Industries’ products include a wide range of LED-based lights and controls used in the commercial, industrial, and premium residential markets. Company-owned brand names include Saylite, Texas Fluorescents Reinvented, Mobern, Lights Fantastic, Lights Fantastic Pro, Lite and LFP Lighting. The company has 180,000 sq. ft. of manufacturing space and operates four lighting showrooms. Fleco, led by CEO Jon Sayah, was founded in 1965 by Larry Sayah and is headquartered near Dallas in Carrollton, TX.
With the closing of this transaction, Fleco will begin doing business as Saylite. CEO Jon Sayah will remain in his current role with the company under CORE ownership.
“We are thrilled to partner with Jon and the entire Saylite team, and to continue building on the company’s legacy while supporting its future growth,” said John May, managing partner of CORE. “The investment in Saylite illustrates CORE’s deep experience investing in the industrial technology sector and our continued interest in attractive investments in industries that are benefitting from digital and emerging technologies. We continue to seek add-on acquisitions for Saylite as well as additional industrial technology platforms across North America.”
CORE makes control investments in companies that have revenues of up to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors. In February 2019, CORE held a final close of CORE Industrial Partners Fund I LP with total commitments of $230 million. The new fund was significantly oversubscribed with demand in excess of the initial target of $200 million and initial hard cap of $225 million. CORE was founded in 2017 and is headquartered in Chicago.
CORE plans to pursue add-on acquisitions for Saylite to extend the company’s products and brand portfolio. “Having operated as a family-owned lighting business for more than half a century, Saylite has built a solid foundation and, we believe, a truly scalable platform,” said Frank Papa, a senior partner at CORE. “Given Saylite’s unique business model and leadership position in the lighting solutions market, we are excited about the company’s growth prospects. We look forward to collaborating with Saylite’s talented management team to enhance the business and pursue additional innovation and growth.”
KPMG Corporate Finance was the financial advisor to Saylite on this transaction.
© 2019 Private Equity Professional | September 4, 2019