Vari-Lite International, Inc. recently announced that it has sold the assets of its Vari-Lite products manufacturing and sales division to Genlyte Thomas Group LLC, a leading manufacturer of lighting fixtures and controls for commercial, industrial and residential markets. The sale included the Vari-Lite family of products as well as all sales, manufacturing and engineering operations associated with this division. GTG also acquired the Vari-Lite trademark and all patents associated with Vari-Lite products. The purchase price, which will be finalized within 30 days, is estimated to be $10.5 million to $11.5 million, which will result in a loss of approximately $4.0 million to $5.0 million.
"Operating as a manufacturer and a rental company was confusing to the industry, and it limited the growth prospects of both our Vari-Lite manufacturing and sales division and VLPS Lighting Services, our rental division," said Rusty Brutsché, chairman and CEO of Vari-Lite International, Inc. "In order for both divisions to achieve their maximum potential, there had to be a clear separation of the two. This transaction allows VLPS Lighting Services to operate independently and to focus on its core competency, lighting rental and production services."
"We saw this as an opportunity to add an established industry leader to the Genlyte Thomas Group," said Larry Powers, CEO of Genlyte Thomas Group. "Vari-Lite is the pioneer of the automated lighting industry. By capitalizing on our manufacturing strengths, we believe we can effectively integrate the VARI*LITE brand into our respected family of lighting businesses."
Vari-Lite International, Inc. will ultimately change its name to VLPS Lighting Services International, Inc. to further reflect the Company's continued commitment to provide lighting systems and services to the entertainment industry.
About Vari-Lite International, Inc.
Publicly traded on the Nasdaq National Market since 1997 under the symbol LITE, Vari-Lite International, Inc. (which will be renamed to VLPS Lighting Services International, Inc.) is a leading worldwide distributor of lighting systems and related production services. The Company markets its products and services primarily to the entertainment industry, serving such markets as concert touring, theater, television and film and corporate events. For more information, visit the company website at www.vlps.com.