LSI Industries sells LED-firm Saco
LSI Industries Inc, based in Cincinnati, US, has announced the recent sale of LED firm Saco Technologies and one of two manufacturing facilities in Woonsocket, Rhode Island. LSI sold all of the capital stock of LSI Saco Technologies for $1.93 million and the Woonsocket facility for $1 million.
Robert J. Ready, Executive Chairman, commented: "During fiscal 2014 we instituted a program to find ways to reduce our manufacturing costs and increase profits. The now completed sales of Saco Technologies and the Woonsocket plant are two of the first actions to accomplish these goals. In the case of Saco Technologies, we felt we had completed the transition of learning the solid-state LED technology and related disciplines, which was the reason we acquired the business. Saco provided LSI with much needed knowledge and experience as we made the decision to develop LED-based products."
He added: "Now, some eight years later, we are a leader in this industry, with LED lighting representing approximately 45 percent of total lighting sales and, in some cases, over 80 percent in certain niche markets. We will continue our working relationship with Saco and Fred Jalbout, to whom we sold the business back to in the first quarter. There will be no loss of our LED intellectual property as Saco pursues its own business plan. Because we have unused capacity in our North Canton facility, it made economic sense to close one of our plants in Rhode Island and move those production requirements. Customers will receive the same level of service while we reduce overhead and improve profitability."