NOTE: This story originally ran last year, but did not make the transition to our new Web site in January. Because it is being reposted now (June 2009), it will show up in RSS and in our daily e-mail update as a new story.
By BRAD ROLLINS
A flurry of Security and Exchange Commission filings on Friday finalized sale of the parent company of two major San Marcos manufacturers to Philips Electronics.
Louisville, Ky.-based Genlyte Group Inc., whose brands include Wide-Lite and HADCO produced here, is being absorbed by Amsterdam-based giant Royal Philips Electronics for a reported price of $2.7 billion. The company employs more than 300 people here.
It is not clear how the merger might affect Genlyte’s local operations and employees. Neither Genlyte chief financial officer Bill Ferko nor Wide-Lite general manager John Campsmith returned phone calls for comment this week.
When the merger was announced in November, Genlyte chief executive officer Larry Powers said, “We believe joining with Philips is in the best interest of our shareholders, customers, vendors and employees, and that our combined resources will produce the best possible entity for competing, growing and creating value for our customers.”
Genlyte received two economic incentive packages from the city including an eight-year tax abatement for a $18.5 million new plant on Clovis Barker Drive for Wide-Lite and a five-year abatement for a $1 million relocation of HADCO to Wide-Lite’s former plant on Wonder World Drive.
Both companies produce commercial and residential lighting fixtures and related products. Last fiscal year, Genlyte recorded gross revenues of $1.6 billion.
A press release issued by Phillips said, “Philips’ plan to extend Genlyte’s activities beyond North America will also contribute to growth. Following the integration of Genlyte, Philips expects to benefit from leveraging economies of scale in purchasing of materials and services as well as Genlyte’s expertise in outsourcing and streamlining of manufacturing activities, contributing to margin expansion.”Email | Print