LSI Industries is jumping into the LED (light-emitting diode) industry with the acquisition of Saco Technologies Inc.


The lighting company said Tuesday that it will pay $23 million in cash and about 1.4 million shares of LSI common stock for the Montreal-based Saco, as well as assuming some debt.

Saco will be part of the company’s LSI Technology Solutions Plus business segment, and Saco CEO Fred Jalbout will serve as president of the unit. Operations will continue in Montreal, with the management team and employees remaining in place, LSI said in a news release.

Saco specializes in large-format video screens, including the largest video screen in the world, located at the Nasdaq Marketsite on Times Square in New York. The company also has video screens in numerous sports and entertainment venues, including the Great American Ball Park in Cincinnati.

LSI President and CEO Bob Ready said the lighting company sees LED technology as part of its future. LSI designs and manufactures lighting fixtures and graphic elements for the retail, specialty niche and commercial markets.

“The combination of the emerging importance of solid-state LEDs as a cost-effective, superior light source and LSI’s well-established position in the lighting and graphics markets creates a very powerful growth platform,” Ready said in the news release.

LSI (NASDAQ: LYTS) expects the acquisition to begin adding to earnings in 2014. Saco is expected to report 2013 revenue of $26.4 million and operating income of $6.3 million.

LSI’s stock was trading Tuesday afternoon at $14.20 per share, down 16 cents.