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February 5th, 2008
Parent company of two major local employers sold

Managing Editor

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.”

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4 thoughts on “Parent company of two major local employers sold

  1. I’ve got my fingers crossed and so should you, because losing Wide-Lite or Grande would be really rough.

    What are we doing to attract more jobs? What are we doing to make our city more appealing to employees and employers?

  2. I’m surprised that this article does not generate more attention, especially given all the talk of attracting new jobs at the last election.

    Have we met with anyone from Philips Electronics? Now that they can find San Marcos on a map and have at least a little invested in our city, perhaps we can get them to expand operations here.

    At a minimum, we ought to be talking to them to try to ensure that they do not leave.

  3. I think its interesting. I think people interested in this sort of thing typically aren’t likely to want to talk about it on Newstreamz. But I wish they would, of course.

  4. Ted, your comment that now Philips Electronics can find San Marcos on a map, reminded me that indeed a lot of people do not know about San Marcos. I sent an update note to a number of people earlier this week telling them about moving to San Marcos, and more than one said they would need to get a map out to find the location. Growing up in Texas, I guess I take for granted that everybody would know about San Marcos.

    Hopefully outreach activities are taking place to help our current employers continue to feel good about operating here in the community. Brad, maybe there are some “behind the scenes” conversations taking place, that we just don’t know about at present?

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