Delta to Broaden IoT-Enabled Portfolio with Acquisition of Lighting Firm Amerlux

March 09, 2019 by Scott McMahan

Delta Electronics, Inc. and Amerlux, LLC, a U.S.-based LED architectural lighting and IoT-enabled solutions company, announced the signing of a definitive agreement in which Delta Electronics (Netherlands) B.V., a wholly-owned subsidiary of Delta, will acquire 100% of Amerlux's interests for $90,000,000 (about NTD 2,769,300). The transaction is expected to close during the second quarter of 2019. The agreement includes an earn-out mechanism in which Delta would pay an additional pre-established amount for the transaction should Amerlux's 2019 EBITDA and revenue reach a predetermined target.

New Jersey-based Amerlux is a leading brand of architectural LED lighting solutions. The company offers high-end indoor and outdoor luminaires with a focus on lighting quality, energy efficiency, and aesthetics. As part of its LED lighting product offering, the company also supplies IoT-enabled solutions.

Building automation has become a significant focus for Delta's long-term growth strategy. The proposed acquisition is expected to give Delta customers a broader portfolio of IoT-enabled smart green solutions for sustainable buildings and cities. The company's IoT-enabled solutions already include building automation, energy management, commercial and industrial LED lighting, surveillance, as well as indoor environmental quality systems.

"As a world-class corporate citizen committed to enabling energy conservation and lower carbon emissions for mankind, Delta continues to broaden its solutions portfolio to improve the energy efficiency, security and comfort of buildings and cities. Lighting is an integral focus for Delta because, in the IoT era, it is an ample source of crucial data for the optimization of smart automation systems," Delta's chief executive officer, Mr. Ping Cheng, observed.

"Amerlux has a strong reputation in the field of architectural LED lighting, which we believe will enhance Delta's profile as a total solutions provider. The combined offering of our companies will deliver substantial advantages to our customers and channel partners. Amerlux's existing facilities in Oakland, New Jersey will continue to produce interior and exterior lighting products, and the current management and employees of Amerlux will remain in place," Mr. Ping Cheng added.

"Since its inception, Amerlux has consistently grown its revenue base to become a world-class provider of high-end architectural lighting luminaries. Our products have been certified in over 58 countries throughout the world. Since the introduction of LEDs approximately ten years ago, the market has grown more and more sophisticated in its technology," Frank P. Diassi, founder and chairman of Amerlux, said.

"The initial phase of LED marketing was simply the replacement of incandescent luminaries and focused primarily on energy savings. The current phase of LED marketing focuses on the quality of the light produced by the LEDs. We are now entering the third phase of LED marketing which involves controls of the luminaries, a technology in which Delta excels. The combination of Delta and Amerlux will accelerate the development of solutions for smart buildings and sustainable cities," Diassi added.

"We are delighted to become part of Delta as this will help Amerlux become a total lighting systems provider. Delta's comprehensive portfolio of products and solutions in the areas of smart building automation and energy management can be integrated with Amerlux's line of LED luminaries. By complementing strengths from both sides, we will be able to provide enhanced value to our customers and further our position in the smart lighting market," Chuck Campagna, president and CEO of Amerlux, stated.

The acquisition of building automation system providers, Canadian-based Delta Controls and Austria-based LOYTEC, as well as the acquisition of a considerable stake in Taiwan-based surveillance systems provider Vivotek, Inc., support that strategy.

Delta says Amerlux will complement its total offering in and around the building space, by bringing its exceptional product portfolio, industry reputation, and strong customer relationships.