LSI Industries prices offering of stock

LSI Industries prices offering of stock

LSI Industries Prices $90 Million Stock Offering to Fund Strategic Acquisition

LSI Industries Inc. (NASDAQ: LYTS) has priced a proposed public offering of $90 million in common stock under an effective shelf registration statement, with proceeds intended to advance its growth and acquisition strategy. The offering, subject to market conditions, includes an option for underwriters to purchase an additional 15% of shares within 30 days according to the announcement. The company plans to use the net proceeds to partially fund its acquisition of the Royston Group, repay borrowings under a senior secured credit facility, and support general corporate purposes as detailed in the offering document.

The Royston Group acquisition, valued at $325 million, is a key component of LSI's expansion plans. Royston, a vertically integrated provider of retail branding solutions, operates in high-growth markets such as convenience stores, grocery, and quick-serve restaurants. The transaction, expected to close in LSI's third fiscal quarter of 2026, is anticipated to be accretive to both earnings and margins. Royston's pro forma trailing 12 months (TTM) revenue of $272 million and adjusted EBITDA of $38 million (14.0% margin) position it as a strategic addition to LSI's portfolio according to company analysis.

LSI's stock offering underscores its focus on leveraging equity to finance acquisitions while maintaining financial flexibility. The company currently operates 18 manufacturing facilities across the U.S. and Canada, employing approximately 2,000 people. Post-acquisition, LSI's operational footprint will expand to 23 locations, enhancing its capacity to serve retail clients with integrated solutions spanning lighting, signage, and display systems as reported in the press release.

The offering is managed by Oppenheimer & Co. and Craig-Hallum as joint lead book-running managers. A final prospectus supplement, detailing the offering's terms, will be filed with the SEC according to the announcement. Investors are cautioned that forward-looking statements, including projected use of proceeds and acquisition synergies, are subject to risks such as market volatility and regulatory approvals as stated in the financial document.

This move aligns with LSI's "Fast Forward" value creation strategy, aiming to accelerate revenue growth and margin expansion through targeted acquisitions and operational efficiencies according to company strategy. With the Royston acquisition, LSI seeks to solidify its position as a leading provider of retail branding solutions in North America.

Business Wire, February 25, 2026: Business Wire, February 25, 2026
LSI Industries Press Release, February 25, 2026: LSI Industries Press Release, February 25, 2026