LSI Industries, the Cincinnati-based commercial lighting and display company, is making its biggest move yet, announcing Wednesday that it will acquire Atlanta’s Royston Group for $325 million. Company leaders say the deal will bulk up LSI’s retail display business and fold roughly 900 Royston employees into the combined firm.
Deal Terms and Timeline
In a press release via LSI Industries, the company said it will pay $320 million in cash at closing and $5 million in stock, subject to a working capital adjustment. The agreement is subject to Hart‑Scott‑Rodino review and is expected to close in the third quarter of LSI’s fiscal 2026 year.
Numbers That Move the Needle
Royston generated about $272 million in revenue and roughly $38 million of adjusted EBITDA for the twelve months ended September 2025, and the transaction values the business at about 8.1x adjusted EBITDA, Investing.com reports. On a pro forma basis, the two companies together would have produced approximately $864 million of revenue and $95 million of adjusted EBITDA over the same period.
Why It Matters Here in Cincinnati
As a publicly traded company headquartered in Cincinnati, LSI’s decision to buy Royston is a major local development. Executives say the deal accelerates the firm’s “Fast Forward” growth plan and expands its footprint in convenience store, grocery and quick‑service restaurant channels, according to the Cincinnati Business Courier. The acquisition also gives LSI more in‑house manufacturing and turnkey installation capabilities across Royston’s five facilities in four states.
In the company’s announcement, LSI President and CEO James A. Clark said the deal “positions LSI as the leading scaled platform in branded retail solutions,” while Royston President and CEO Frank Callis called the combination “a natural fit” for both companies, LSI Industries said. Once the transaction closes, Royston will be reported as part of LSI’s display solutions segment.
Financing and Industry Context
The transaction is backed by a fully committed bridge facility, with permanent financing expected to be a mix of equity and debt, and LSI anticipates pro forma net leverage of roughly 3.0x at closing, according to Inside Lighting. Trade coverage notes this is the largest deal in LSI’s history and could speed up the company’s timeline for hitting its revenue targets through M&A.
LSI will host a conference call this week to walk investors through the acquisition and field questions, Investing.com reports. The purchase remains subject to customary regulatory approvals and working‑capital adjustments, and local customers and competitors alike will be watching how LSI folds Royston’s roughly 900 employees and customer relationships into the operation once the deal officially closes.
