What Does the Topaz Acquisition Mean to Halco?
Business consultant David Gordon of Electrical Trends weighs in.
Georgia-based Halco Lighting Technologies has announced its acquisition of Topaz Lighting’s Permanent Lighting business from Southwire Company, LLC, in what the company says is a strategic move to strengthen its position in the lighting industry.
The acquisition enables the combined brands to serve a broader range of applications with high-quality, energy-efficient lighting products and solutions. In a press release, Halco executives stated that customers will benefit from an expanded portfolio designed to meet diverse needs while maintaining Halco’s commitment to performance and sustainability.
Together, Halco and Topaz bring over 100 years of combined experience in the lighting industry.
“This acquisition marks an exciting chapter for Halco Lighting Technologies,” said CEO Chris Chickanosky. “By bringing Topaz Permanent Lighting Solutions into our portfolio, we’re not only expanding the product offering that delivers a broader set of solutions, but also an expanded footprint which supports our mission of providing unmatched value and service to our customers.”
David Gordon, principal of the consulting firm Channel Marketing Group, stated his opinion on the acquisition in a post on Electrical Trends:
“Many will recall that Southwire acquired Topaz in 2021. At the time, many could understand Southwire’s interest in Topaz’ electrical fittings and components business, but questioned the lighting business. Perhaps an extension of the product offering because distributors sell it and contractors install it? It just seemed like an odd fit, but they tried to make it work. For some reps it did, others were challenged. Now it becomes part of Halco.
“Halco, and its parent, Summer Street Capital, are essentially ‘doubling down’ on the lighting business. The acquisition is complementary in many ways as there are product categories that were on Halco’s roadmap that they now will be able to offer, enabling the company to become more of a ‘complete’ line. Further, it strengthens their business in the Northeast and West Coast while bringing more opportunities to Halco customers in other regions who may have had less exposure to Topaz’ offering.
“Inevitably there will be some rep changes once the lines combine and presumably one brand as this becomes one business. The rep evaluation process will be interesting as it will probably come down to ‘support.’ Which rep will embrace a broader offering, potentially evaluate their own line card, and can drive demand at the distributor and contractor level. These are the cornerstones of NEMRA’s Rep of the Future pillars, which Halco embraces. And, as Halco reps know, and Topaz ones will learn, Halco is a data-driven company with good tools that values relationships.
“Given that merging operations will take a little time, it would behoove reps to plan for how they could grow the business … in order to win the combined lines.
“From a Southwire viewpoint, the permanent lighting business never seemed permanent. There were not synergies with the remainder of the business, and it was doubtful that Southwire was going to get deeper into the lighting business. Divesting this product offering enables Southwire to focus on its core business … wire/cable and offerings that are complementary. And it will eliminate what could have been viewed as a ‘distraction’ on the sales management/rep side of the business.
“At the end of the day, sometimes the best strategies are focusing on your core. This is one of those rare acquisitions where a sale will benefit both companies and customers.”
