LSI Industries Acquires Canada’s Best Holdings, Expands Solutions
LSI Industries Inc., a leading U.S.-based manufacturer of commercial lighting and display solutions, has announced the acquisition of Canada’s Best Holdings (CBH) for an all-cash purchase price of $24.0 million, with an additional $7.0 million performance-based earnout potential.
CBH, known as Canada’s Best Store Fixtures (CBSF), is a premier provider of retail fixtures and custom store design solutions catering to grocery, quick-service restaurants (QSRs), convenience stores, banks, and specialty retail markets. The company offers a comprehensive, vertically integrated service from design and fabrication to installation. CBH has built strong relationships with clients ranging from regional retailers to major national and international brands, operating across four key facilities in Ontario and Alberta.
Strategic Expansion into Canada
LSI’s acquisition of CBH aligns with its long-term vision to expand its lighting and display solutions platform across North America. “This acquisition represents another key milestone in our strategic roadmap,” said James A. Clark, President and CEO of LSI Industries. “CBH enhances our capabilities, extends our geographic reach, and strengthens our presence in vertical markets such as grocery, QSR, and convenience retail.”
Clark emphasized that CBH’s integrated business model, technical expertise, strong customer relationships, and commitment to performance excellence closely align with LSI’s core values. He noted that CBH marks the third acquisition in the custom display solutions market within four years, complementing the 2024 acquisition of EMI Industries. This transaction is expected to be immediately accretive to LSI’s margins and earnings per share.
Enhancing Market Presence
The CBH acquisition achieves several strategic objectives for LSI:
- Expanding into high-growth Canadian markets: The deal significantly increases LSI’s footprint in Canada, allowing for local project execution for large retailers operating in both Canada and the U.S., as well as businesses exclusive to Canada.
- Diversifying customer base: While LSI and CBH share some customers, the majority are unique, creating opportunities for cross-selling and revenue synergies.
- Broadening vertical market coverage: CBH expands LSI’s reach into banking, pharmacy, and specialty retail markets.
- Increasing local manufacturing capabilities: CBH adds 132,000 square feet of manufacturing, distribution, and logistics space, enhancing LSI’s ability to meet growing demand for custom retail fixtures.
“We see strong cross-selling potential by leveraging CBH’s customer base with our combined solutions,” added Clark. “This acquisition positions LSI as a leading provider of integrated retail display solutions across North America.”
Leadership and Integration Plan
CBH’s leadership team, including CEO Bud Morris and COO Luisa Loffreda, will remain in place, ensuring a seamless transition. CBH will continue to operate as an independent brand under LSI’s display solutions segment beginning in fiscal Q3 2025. The acquisition brings over 120 CBH employees into LSI’s workforce, reinforcing the company’s expertise and market presence.
“We are thrilled to join LSI, an industry leader with a proven track record of growth,” said Morris and Loffreda in a joint statement. “The combined business will unlock significant opportunities, leveraging our shared commitment to customer satisfaction and innovation.”
Financial Impact and Funding Strategy
CBH has demonstrated a track record of stable, profitable growth, generating an average of $24.0 million in annual sales and $4.0 million in adjusted EBITDA over the last two fiscal years. The acquisition is expected to provide immediate financial benefits, improving both margin rates and earnings per share for LSI.
LSI funded the transaction using cash and available credit from its $100 million facility. The company’s pro-forma net debt-to-adjusted EBITDA ratio is expected to be approximately 1.1x at closing. LSI plans to reduce leverage over the next 24 months, supported by increased free cash flow from the combined businesses.
Strengthening LSI’s Competitive Position
The acquisition of CBH positions LSI as a market leader in retail display solutions, following prior acquisitions of JSI Store Fixtures in 2021 and EMI Industries in 2024. The combination of these three businesses creates a comprehensive platform capable of serving multinational retailers with cross-border operations.
Additional benefits of the CBH acquisition include:
- Enhanced product offerings: A broader range of custom display fixtures tailored to evolving retail trends.
- Strengthened manufacturing and logistics: Increased production capacity and localized service capabilities in Canada.
- Greater customer reach: The ability to service both independent retailers and large-scale enterprises with expanded product solutions.
- Scalable growth opportunities: A stronger foundation for continued expansion into new markets and industries.
“Our integrated lighting and display solutions portfolio is unmatched in the markets we serve,” said Clark. “With this acquisition, we are well-positioned for sustained commercial growth and value creation for our shareholders.”
