Relume sold to Conn. company; subsidiary files for bankruptcy
August 28, 2013
Exactly how much is an LED manufacturer going for these days?
If it's the Oxford-based Relume Technologies, Inc., then the price tag is $15 million.
That's how much Revolution Lighting Technologies, Inc., an LED (light-emitting diode) manufacturer based in Stamford, Connecticut, spent to acquire Relume.
The deal closed Aug. 22.
Approximately $5 million of the purchase price was paid in cash, while the remaining $10 million was paid in Revolution Lighting common stock at a price of $4.59 per share, according to a press release issued by the Connecticut company.
"Revolution Lighting's significant resources will allow Relume to invest in the products, people, technology and equipment necessary to further accelerate our growth in the LED lighting market," said Relume's President and CEO, Crawford Lipsey, in a press release.
Despite repeated attempts via phone and e-mail, Curt McIntosh, director of marketing for Relume Technologies, did not respond to requests for comment.
Relume will continue to operate at 1795 N. Lapeer Rd. in Oxford Township and retain its approximately 60 employees, according to what McIntosh told Crain's Detroit Business.
The press release indicated that "the majority of Relume's management team" will be retained as well.
As part of the acquisition, Relume Technologies agreed to have its subsidiary, Relume Corp., file for voluntary Chapter 7 bankruptcy, which happened Aug. 15 in Michigan Eastern Bankruptcy Court.
McIntosh told Crain's that this subsidiary had not been active for several years and had no employees. The bankruptcy petition indicated that Relume Corp. had assets of $280,696 and liabilities of $5.5 million.
Formed in 1994, Relume Corp. was involved with LED lighting for the auto industry, while Relume Technologies handled LED technology for outdoor markets such as lighting for municipal streets and roadways, parking lots and garages, pedestrian areas, buildings and outdoor advertising displays.
Oxford Village utilizes Relume's lighting technology. In 2010, 83 of the downtown area's decorative street lights along M-24 and Burdick St. were retrofitted with LED fixtures from Relume, controlled and monitored by a wireless system. The new street lights were paid for through a mixture of state grant money and Downtown Development Authority funds. The wireless control system, valued at nearly $27,000, was donated by Relume.
More than 75 percent of Relume Technologies' business is made up of outdoor lighting. The remainder is split between its smart grid control systems and LED lighting for media and signage.
Relume's focus on the outdoors seems to complement Revolution Lighting's product line, which is mainly focused on indoor applications for industrial, commercial and government markets.
"Our businesses are an ideal strategic fit and we are confident that our product offering, engineering capabilities and sales resources will support and enhance Revolution Lighting's business and growth," said Lipsey in the press release.