Acuity Announces Agreement to Acquire QSC, LLC

Core Viewpoint - Acuity Brands, Inc. has announced a definitive agreement to acquire QSC, LLC for a total purchase price of $1.215 billion, which is expected to enhance Acuity's earnings per share in fiscal 2025 [1][2] Company Overview - Acuity Brands, Inc. is a market-leading industrial technology company focused on solving problems in spaces, light, and more through innovative products and services [4] - The company operates through two main segments: Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG) [4] - Acuity Brands aims to grow by developing new products and services, achieving customer-focused efficiencies, and entering attractive new verticals [4] Acquisition Details - The acquisition of QSC is valued at $1.215 billion, or $1.1 billion net of expected tax benefits, representing approximately 14 times QSC's estimated EBITDA for the twelve months ending August 31, 2024 [1][2] - QSC generated sales of approximately $535 million for the twelve months ending August 31, 2024 [2] - The transaction is expected to close in the second quarter of fiscal 2025, pending customary closing conditions [3] Strategic Importance - QSC is recognized as a leader in the audio, video, and control (AV&C) industry, providing a cloud-manageable platform with applications across various sectors including education, commercial, hospitality, government, healthcare, and transportation [2][6] - The acquisition aligns with Acuity's vision of data interoperability and aims to enhance the intelligence and efficiency of built spaces [2][3] Financing Structure - The acquisition will be financed through $600 million of term loan financing, with the remainder covered by cash on the balance sheet [3]