Philips announces agreement to acquire Genlyte – a leading North American luminaires manufacturer

Media backgrounder

Luminaire innovation is widely viewed as essential to the further development of tomorrow’s ’green’ energy efficient lighting and particularly, Solid State Lighting (SSL)  using light emitting diode (LED) technology. Through the acquisition of Genlyte, a leading North American luminaires manufacturer, and the merger of the Genlyte business with its own, Philips will create the number 1 lighting company in North America.

 

Genlyte has an established reputation for developing innovative new products. Its product platform promotes luminaire efficiency and will be instrumental in Philips’ successful introduction of ‘green’ lighting technologies such as energy efficient fluorescent lamps and electronic ballasts, compact fluorescent lamps, high intensity discharge lamps and solid state lighting. The combined luminaires business will provide the platform to bring these energy efficient lighting solutions to the North American market.
 
Philips’ acquisition of Genlyte will enable the company to accelerate the development and adoption of greener energy efficient technologies. In addition to its own technologies Philips has built an impressive platform of complementary energy efficient technologies through acquisition. In 2007, it acquired Color Kinetics, which strengthened its light emitting diode (LED) portfolio, technology base and intellectual property position, and Partners in Lighting International which enhanced this position further. Also in 2007, Philips acquired TIR Systems, which, like Genlyte, provided Philips with a strong line of fully-integrated solid state lighting (SSL)-modules used to deliver integrated lighting products to fixture manufacturers. In 2005, Philips’ acquired Lumileds, through which it ensured a leading position in high-power LED dyes.

 

What is a luminaire?
A luminaire is a lighting fixture complete with installed lamps, ballasts and other accessories. These may include parts designed to distribute the light (optics), to position and protect the lamps and to connect the lamps to a power supply (ballasts). Known in Europe as luminaires, they are commonly known as “light fittings” or “fixtures” in North America. In the last 15 years considerable progress has been made in luminaire technology with significant increases in ‘luminaire efficiency’, the ratio of total lumen output of a luminaire and the lumen output of the lamps, expressed as a percentage. For example, if two luminaires use the same lamps, more light will be emitted from the fixture with higher efficiency.


Luminaires are distinct from lamps and ballasts as they combine all elements of a lighting fixture within an integrated lighting system. This is different to lamp and ballast products which are sold individually and therefore need to be combined or matched with other lighting products.

 

Luminaires and energy efficiency
Luminaires systems play a crucial role in lighting technology’s transformation toward ‘green,’ energy efficient lighting and particularly, SSL, using LEDs. Because luminaires are an integrated lighting fixture it is widely accepted that they provide greater opportunities to maximize efficiencies and integrate new energy efficient technologies. In essence, luminaires are the platform for bringing energy efficient lighting solutions to the market.

 

Over the past years, major innovations have been made in lighting technology to improve efficiency. Examples of this are:

  • T5 systems with electronic ballasts and improved optics, which save over 35% compared to conventional systems with electro-magnetic ballasts in office and industry segments.
  • Compact high intensity discharge (HID) lamps such as Ceramic Discharge Metal Halide lamps (CDMs ) which save energy and enhance the quality of light in for instance shop applications.
  • Compact fluorescent lamps (CFLs) which save over 80% more energy over standard incandescent bulbs (General Lighting Source or GLS bulbs) in common applications such as ceiling luminaires (otherwise known as ‘downlight’ luminaires) which can use either CFL, HID, halogen or GLS lamps.  
  • Cosmopolis lamp-ballast-luminaire systems which save over 40% compared to conventional systems
  • And, most recently, SSL, using high power LED’s, which save energy, offer extremely long life and make new building enhancing lighting effects possible with low energy consumption.

 

Solid State Lighting
Solid-state lighting is a new technology that is widely believed to have the potential to far exceed the energy efficiencies of incandescent and fluorescent lighting. It is highly suited to development as part of luminaire lighting products. Solid-state lighting uses light-emitting diodes or "LEDs" for illumination. The term "solid-state" refers to the fact that the light in an LED is emitted from a solid object—a block of semiconductor—rather than from a vacuum or gas tube, as in the case of incandescent and fluorescent lighting.

 

Solid state lighting lasts up to 16 times longer than regular lamps. It is believed that over the next five to 15 years, SSL will revolutionize the lighting market as the performance of LEDs measured in lumens per watt becomes competitive with traditional light sources while at the same time surpassing these in energy efficiency. Independent market sources project the SSL addressable market will reach USD 20 billion to USD 30 billion in 2025, and is growing currently by approximately 30% per year.

 

There is also a significant opportunity for luminaire applications to create a replacement market for lamps and ballasts. This is because the lifetime of an installed luminaire exceeds the lifetime of lamps and ballasts.


Luminaires Applications
Luminaires are used widely in industrial, commercial and residential lighting applications. The commercial segment is further split in the office, shop, outdoor segment and lighting controls, where the high quality, versatile, controlled and low energy lighting that new luminaire technology provides, is used in an increasingly wide of applications. The luminaires market is also growing rapidly in more specific sub-segments such as theater, healthcare and sporting facilities. Genlyte covers each of these market segments, although the residential sector only to a small extent, and offers a broad range of low to high-end luminaires.

 

The North American Luminaires market
The North American (USA and Canada) market which can be defined as the non-residential construction luminaires market and the residential market, is estimated to have been USD 11.9 billion in 2006 and to be USD 12.5 billion in 2007. Genlyte holds the number 2 position in the non-residential construction luminaires market. The non-residential market involves commercial and industrial business such as luminaires used in office buildings, shops, streets, manufacturing plants, gas stations. Genlyte realizes just under 90% of it sales in the non-residential commercial and industrial market.

Presentation

Webcasts

At 10.00 AM CET today, financial analysts are invited to join a telephone conference with Pierre-Jean Sivignon, Chief Financial Officer of Royal Philips Electronics and Theo van Deursen, Chief Executive Office of Philips Lighting.

At 11.30 AM CET today, journalists are invited to join a telephone briefing with Mr. Theo van Deursen.

Biographies

Images

Genlyte is a leading manufacturer of lighting fixtures, controls, and related products for the commercial and industrial markets. Acquiring Genlyte will provide Philips with a platform for further profitable growth by building on Genlyte’s extensive presence among lighting customers in North America to speed up the adoption of energy-saving, green lighting technologies.

 

The images below show some of the products which Genlyte’s portfolio has to offer.

Caesar’s Palace

Ceasar's Palace

High Intensity Discharge exterior flood lights and accent light used to illuminate the latest expansion at Caesar's Palace Hotel and Casino in Las Vegas. These lights are blending into design and enhance their environment.

Decorative outdoor posts

Callisto

Lumec High Intensity Discharge decorative outdoor post top fixtures intend to preserve the dark skies. The combination of two lighting technologies provides for maximum light control while contributing to the spirit of its settings.

Concert lighting

Vari*lite concert

Vari*lite luminaires are being used at concerts, television/film studios, theatre, special events, tradeshows, permanent installations, and tradeshows/corporate events.

Energy efficient fixtures

Lightolier

A variety of energy efficient Lightolier fixtures used in Genzyme Corporate headquarters in Massachusetts, a LEED certified green building. Energy conservation is achieved through the use of a highly efficient optical design, dedicated lamp and ballast combinations for maximum lumens per watt, and an integrated sensor system which powers down the fixtures when they are not needed.

Useful links

For further information, please contact:

Jayson Otke

Philips Corporate Communications
Tel:  +31 20 5977215   
Email:  jayson.otke@philips.com

David Wolf

Philips Corporate Communications North America
Tel:  +1 212 536 0817   
Email:  david.l.wolf@philips.com

Raymond L. Zaccagnini

Genlyte Group
Tel:  +1 502 420 9500   
Email:  rzaccagnini@genlytegroup.com

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lighting and consumer lifestyle, delivering products, services and solutions through the brand promise of "sense and simplicity". Headquartered in the Netherlands, Philips employs approximately 128,100 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.