Genlyte Group
July 25, 2011 – 7:41 pm
Business Profile
The Genlyte Group manufactures designs, sells and markets, controls, lighting fixtures and various other related products for various applications in residential, industrial and commercial markets in North America. The products of Company, include incandescent, LED (light emitting diodes), HID (fluorescent and high-intensity discharge), lighting controls, poles, lighting fixtures and accessories for residential, commercial, industrial, medical, institutional, entertainment, sports and hospitality markets, and also provide task lighting for almost all markets. The Company has various divisions through it operates. These divisions include: Chloride Systems, Capri/Omega, Controls, Gardco, Day-Brite, Hadco, Shakespeare Composite Structures, JJI, Strand, Lightolier, Supply, Wide-Lite and Thomas Residential in US and Ledalite, Canlyte, Thomas Lighting Canada and Lumec in Canada. The company has acquired Strand and JJI division in 2006. These divisions also have operations in Hong Kong and Germany.
The Genlyte Group markets its various products, in United States, under several brand names that includes Allscape, Alkco, Bronzelite, Ardee, Canlyte, Carsonite, Capri, Chloride Systems, D’ac, Crescent, Day-Brite, ExceLine, Emco,Entertainment Technology, Forecast, Guth, Hadco, Gardco, Hanover Lantern, Hoffmeister, High-Lites Horizon,Lam, Lightolier, Ledalite, Lite-energy, Lightolier Controls, Lumec, Metrolux, Morlite, McPhilben, Nessen, Omega, Shakespeare Composite Structures, Quality, Specialty, Strand, Stonco, Thomas Lighting, Translite Sonoma, Thomas Lighting Canada, USS Manufacturing, Vista, Vari-Lite and Wide-Lite.
The Acquisitions of company are as follows.
JJI Lighting Group in 2006:
In May 2006, the Genlyte Group acquired JJI (JJI Lighting Group), which has headquartered in Greenwich, CT and has operating units in Franklin Park, IL; Shelby, NC; SantaAna, CA; Mamaroneck, NY; Erie, PA; Waterbury, CT; and Ludenscheid, Germany. The JJI was United States’ leading lighting fixture company, before acquisition, and also has various lighting brands that complement and support Company’s current business.
Strand Lighting in 2006:
In July 2006, the Genlyte Group acquired the Hong Kong and U.S based operations of Strand (Strand Lighting) and few share of Strand Lighting Ltd. (UK) as a restructuring of the company, under Strand Lighting Ltd. The Strand was incorporated in 1916 as a producer of lighting systems and entertainment lighting. This acquisition is very useful for Company’s Entertainment Technology, Vari-Lite, and Lightolier Controls product and also enhances Company’s presence in entertainment lighting and the atrical markets. The acquisition cost was $587.
Carsonite International Corporation in 2006:
In September 2006, the Genlyte Group acquired all shares of Carsonite International Corporation (“Carsonite”).It is a subsidiary of Omega (Omega Polymer Technologies, Inc.). This acquisition is very useful for Company’s current Shakespeare Composite Structures product that is in the roadway, utility, park and various recreation markets. The Carsonite also has factory in Varnville, SC and another factory, which is leased, in Early Branch, SC.
32% Minority Interest in GTG in 2004:
In 2004 Genlyte, through its subsidiaries, has acquired 32% minority interest in GTG, which was owned by Thomas for $386,500 plus 32%of GTG’s earnings. This acquisition was accounted by using the purchase method of accounting.
The products of the company primarily use fluorescent, incandescent, LED (light emitting diodes) and HID (and high-intensity discharge) light sources. The company’s products are marketed to distributors. They resell products in new residential, industrial and commercial construction. The company never sells its products directly to the end-user, so it never knows the exact revenue came from product sale. Apart from this, engineers, architects, building owners and contractors promote products of the company. Products are marketed throughout Canada, United States and Mexico.
In 1985, the Genlyte Group Incorporated (“Genlyte”) was formed in State of Delaware as subsidiary (wholly-owned) of Bairnco Corporation. Genlyte was separated from Bairnco Corporation, in 1988 and became an independent company.
Genlyte started to combine its business to Thomas (Thomas Industries Inc) company’s lighting business. In August 1998, Genlyte completed this combination and form a limited liability company which is GTG (Genlyte Thomas Group LLC). Genlyte has 68% of shares of GTG and has liabilities to GTG. Thomas group has few liabilities of Thomas Lighting and has 32% of shares in GTG. In 2004 Genlyte acquired 32% Thomas’ shares in GTG.
The company’s shares were traded on NASDAQ National Market System under the ticker “GLYT.” The Net sales of the company were $1,484.8 million in 2006, increase to 18.6% from 2005. The Net income was $154.5 million for 2006, increase to 82.1% from 2005.
The Company produces large quantity of products through the use of various raw materials and its components such as aluminum, steel, ballasts, sockets, plastic, lenses, wire, corrugated cartons and glass from various sources. The Genlyte Group has more than 500 International and United States design patents, registered trademarks, and mechanical patents. Genlyte Group maintains it by regular trademarks renewal and maintenance fees payment for its patents.
The Company’s Canadian and US lighting market estimates about $8.9 billion revenues annually. The Genlyte Group’s products are very dominant in lighting industry and also compete in various other markets with several competitors in each market. The major competitions in outdoor and indoor markets are on service, price, design, delivery, product quality, innovation and performance. Product that are commodity-type, compete on delivery, quality and price. Product that are differentiated type, compete on innovation, design, and product performance.