Orion Energy Systems, Inc., a leading power technology enterprise, announced yesterday that it has completed the acquisition of Harris Manufacturing, Inc. and Harris LED, LLC. Harris Manufacturing and Harris LED had specialized in designing, sourcing and manufacturing energy-efficient lighting systems including fluorescent and LED lighting solutions, and day-lighting products.
The purchase price of the transaction was $10 million, subject to post-closing adjustments for net working capital. The purchase price was paid through a combination of $5 million in cash, $3 million in a three-year unsecured subordinated note and $2 million of unregistered Orion common stock (totaling 856,997 shares). In addition, Orion may pay up to an additional $1 million in shares of unregistered common stock upon Harris’ post-closing achievement of certain revenue milestones in calendar year 2013 and/or 2014.
"We are excited to join the Orion group and, in so doing, recognize the many opportunities it will bring to cross-sell products across our respective end markets," said Andrew Bebbington, Vice President of Business Development of Orion and previously CEO of Harris. "We believe the LED retrofit arena will benefit substantially from a broader, nationwide sales force—just as the office and retail markets begin the transition to LED lighting. It's a great time to bring our two organizations together and accelerate the company's growth trajectory."
“We are very pleased to report the closing of the Harris acquisition and welcome its customers and employees to Orion,” commented John Scribante, Chief Executive Officer of Orion Energy Systems. “Through this transaction we have significantly expanded the breadth and depth of our product portfolio, bringing a comprehensive line of LED and fluorescent fixtures, day-lighting products, and fixture retrofit solution to Orion.”