Prairie Capital VI, LP partnered with the founder and management team of Architectural Lighting Works (the “Company” or “ALW”), to recapitalize the business. Headquartered in Oakland, CA, ALW is a designer and assembler of architectural LED lighting fixtures and participates in the large, fragmented and rapidly growing LED lighting industry.
ALW has a strong brand reputation in the architectural LED lighting market providing high quality, design-oriented fixtures, especially for the slot and linear product category. ALW focuses on providing made-to-order lighting solutions, primarily serving customers in the commercial market as well as select healthcare, retail, hospitality and education applications. The Company’s LED fixtures are sold nationwide through a diversified rep network of over 50 independent sales agencies. The ALW brand was further strengthened through the recent acquisition of Neidhardt, Inc. in January 2017. The addition of the Neidhardt brand expands ALW’s portfolio of decorative LED luminaires and enhances the Company’s reach within the high-end architectural and design communities.
LED is the fastest growing segment of the lighting market and is projected to continue growing at a double-digit rate annually. LED has experienced rapidly accelerating adoption rates driven by a variety of benefits offered by the technology relative to incumbent lighting solutions, including increased energy efficiency, declining payback periods, more flexible and aesthetic design capabilities, and increased compatibility with intelligent lighting solutions. Despite the technology’s increasing adoption rates, LED’s penetration of the installed U.S. lighting base remains in the early stages, providing significant runway for growth.
Prairie Capital partnered with management to support and accelerate continued company-building investments in new product development, equipment, human capital, finance and IT systems for improved operating efficiencies.