LDC sells advanced lighting specialist JCC Lighting to US electrical manufacturer Leviton

LDC has sold portfolio company JCC Lighting to leading US electrical manufacturing company, Leviton, a global provider of solutions to meet the needs of today’s residential, commercial and industrial buildings.

The deal is a compelling strategic move for Leviton, giving it a strong presence in the UK market, as well as providing JCC Lighting with the support of an international player to help further enhance its growth both within the UK and overseas.

LDC backed the MBO of JCC Lighting in January 2008 with an investment of just under £10million, recognising the company’s track record of designing innovative lighting solutions and strong growth potential.

Over the past five years JCC Lighting has been transformed into a market-leading lighting fixtures business, which designs, sources, imports, warehouses and wholesales a comprehensive range of commercial and domestic lighting. The company’s products are design-led, energy efficient and supported by high levels of service and are sold through electrical wholesalers.

The products are designed in the UK at the JCC Innovation Centre, which has close ties to local universities, with products being sourced primarily from the Far East. Growth has accelerated over the past two years, with sales up by 33% last year and the company is on track to deliver around 16% sales growth this year.

JCC has been following a very focused expansion strategy centred on product innovation led by the Executive Chairman Richard Adey, a former PwC senior consultant with significant expertise in corporate development and technology businesses, who was appointed in 2011.

JCC’s approach has revolved around new product development, with a focus on LED technology. This approach has been supported by a revised marketing strategy, putting more emphasis on impactful merchandising to further grow the JCC brand.

Leviton is one of the largest privately held manufacturers of electrical wiring equipment in North America. It helps customers create sustainable, intelligent environments through its electrical wiring devices, network and data centre connectivity solutions, lighting energy management systems, and security and automation applications. From switches and receptacles, to daylight harvesting controls, networking systems, and equipment for charging electric vehicles, Leviton is the smart choice for solutions to help customers achieve savings in energy, time and cost, all while enhancing safety. The company has a portfolio of more than 25,000 products and 600 patents, employs in excess of 6,500 people, and has sales in 80 countries.

Chris Hurley, CEO at LDC, commented: “We are delighted to have supported JCC Lighting’s rise over the past five years into a market-leading lighting fixtures business renowned for the quality of its designs, its product innovation and cutting edge technology.  Leviton is a natural new parent for the company, given its expertise in this area and its global reach, which will help drive JCC’s further growth and expansion.”

Richard Adey, Executive Chairman of JCC Lighting, commented: “JCC has had a long and successful relationship with LDC, over which time the company has been transformed into a leader in the lighting sector. Our strategy of focusing on innovation, a tighter product range and LED technology has helped deliver strong sales growth and enhanced profitability.  We look forward to developing the next generation of intelligent lighting systems with support of our new parent Leviton.”

Donald Hendler, CEO of Leviton, commented: “The acquisition of JCC is a strong strategic move, giving us a significant presence in the UK and a good base for further expansion in Europe. Leviton has built our reputation on innovation and product development, so it strategically made sense to add a market-leading advanced lighting solutions business like JCC.”

LDC returned 2.4 times money on this exit.

Business Development Asia LLC (“BDA”) was appointed as the adviser on the sale process with the team led by Senior Managing Director, Andrew Huntley.

Notes to Editors

  1. LDC is the private equity arm of Lloyds Banking Group and is authorised and regulated by the Financial Conduct Authority.  
  2. LDC backs ambitious management teams from UK-based medium sized companies seeking up to £100m of investment to fund management buyouts or development capital transactions.
  3. LDC invests in a broad range of sectors and has particular experience in Healthcare, Industrials, Retail & Consumer, TMT, Travel & Leisure, Support Services, Construction & Property and Financial Services.
  4. LDC has a UK regional network with locations in Aberdeen, Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Newcastle, London, Manchester, Nottingham and Reading.