Globe Newswire 17-Apr-2019 11:43 AM
CINCINNATI, April 17, 2019 (GLOBE NEWSWIRE) -- LSI Industries Inc. (NASDAQ: LYTS) today announced that the company has entered into a definitive agreement to sell its manufacturing facility in New Windsor, New York. The company previously announced the closure of the New York facility on October 29, 2018. The facility manufactures indoor lighting products and production is being transferred to the Company's Independence, Kentucky and Blue Ash, Ohio facilities.
Under terms of the agreement, the company will receive approximately $12 million in gross proceeds related to the sale of the New York facility. In addition, the Company expects to generate approximately $4 million in annualized cost savings resulting from improved operating efficiencies. The transaction is expected to close on or before June 30, 2019, subject to final approval from the town leaders of New Windsor, New York.
"The sale of the New York facility is an important strategic step forward, one that improves operating efficiency, streamlines our supply chain and reduces fixed costs by an estimated $4 million annually," stated Jim Clark, President and CEO of LSI Industries. "The cash proceeds resulting from the asset sale position us to reduce leverage while continuing to pursue targeted, accretive investments that support long-term growth of the business."
About LSI Industries, Inc.
LSI Industries Inc. is a U.S.-based manufacturer of lighting, graphics and technology solutions for both indoor and outdoor applications. We are a leading solutions provider to the primary end-markets we serve, including petroleum, automotive, quick serve restaurants, grocery, banking, retail, renovation, parking and warehousing. Our products are marketed throughout North America through a network of independent sales representatives and distributors, as well as through national accounts. We partner with our customers to provide a full range of design support, engineering, installation and project management services. Headquartered in Blue Ash, Ohio, LSI currently employs over 1,200 employees and operates seven facilities throughout the United States.
For details on the uncertainties that may cause our actual results to be materially different than those expressed in our forward-looking statements, visit http://www.lsi-industries.com/fls as well as our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q which contain risk factors.
Additional note: Today's news release, along with past releases from LSI Industries, is available on the Company's internet site at www.lsi-industries.com.
Limited Time Offer:
Claim your free copy of income expert Bryan Perry's new report:
My Top Monthly Dividend Payer (8% Dividend Yield)
You'll also receive Bryan Perry's weekly e-letter, Dividend Investing Weekly, at no cost, along with other associated financial content and special offers.