As reported earlier today, Lumenpulse Group has acquired 80% equity of Sternberg Lighting. At the SDA Showcase in New York, your humble editor sat down with Francois-Xavier Souvay, Chief Executive Officer of the Lumenpulse Group. Here is what I learned:
- Lumenpulse approached Sternberg around the beginning of 2018, and the transaction closed on 15 OCT. It was a relatively strong courtship.
- Sternberg was very appealing because of their strength in the urban lighting and municipality market. Mr. Souvay emphasized the depth of this market and the value of long-term relationships, along with barriers to entry. “It is almost like an annuity, in that as cities expand, orders are placed,” the Cheif Executive Officer stated.
- Souvay said he fell in love with the heritage and employee-owned concept. He explained that the ESOP will still own 20%. He stressed the importance of keeping that entrepreneurship spirit.
- Don’t look for many changes with Sternberg. Lumenpulse allows their acquired businesses to act independently. Sternberg will be managed as an independent business unit and has full authority in developing channels. Therefore, don’t expect rep consolidation. Lumenpulse has set the structure to allow Sternberg to remain strong, independent, and entrepreneurial.