CINCINNATI — LSI Industries Inc. announced that the Company has completed the sale of its New Windsor, New York manufacturing facility. As previously disclosed, the closure and sale of the New Windsor facility follows a strategic decision to transition production operations to the Company’s existing facilities in Ohio and Kentucky.
LSI has received $12 million in net proceeds from the sale of the New Windsor facility. The Company intends to use these net proceeds to reduce outstanding indebtedness, while continuing to invest selectively in the ongoing growth of the business. As previously disclosed, the Company expects to generate $4 million of annualized cost savings following the closure of the New Windsor facility, while realizing improved asset utilization and related operating efficiencies.
As of June 30, 2019, LSI had total net debt outstanding of $39.5 million. Pro-forma for the net proceeds resulting from the sale of the facility, net debt was reduced by $12 million to $27.5 million, or 1.9x trailing adjusted EBITDA* for the twelve months ended June 30, 2019.
“The sale of the New Windsor facility is an important milestone for LSI, one that further streamlines our manufacturing footprint, while reducing net leverage within the business,” stated Jim Clark, CEO of LSI Industries. “The decision to further consolidate production is part of a broader focus on building a high performance operations network that is well-equipped to scale with customer demand, while providing best-in-class customer service. During the past six months, we have continued to invest in our Ohio, Texas, Kentucky, and North Carolina facilities, with the objective of positioning the overall business for profitable growth in market verticals where our differentiated products, service and support capabilities position LSI as a market leader.”