LSI Industries to acquire Royston Group for aggregate price of $325M

LSI Industries (LYTS) announced that it has entered into a definitive agreement to acquire privately held Royston Group, a player in identity and equipment solutions for retail environments, from Industrial Opportunity Partners for an aggregate purchase price of $325 million, subject to a working capital adjustment, with $320 million of the purchase price payable in cash at closing and the remaining $5 million payable in the issuance of shares of the Company’s common stock, valued as of the closing price of the Company’s common stock on February 19, 2026. The transaction is subject to Hart-Scott-Rodino clearance and is expected to close in the third quarter of LSI’s 2026 fiscal year. Royston, and its nearly 900 employees, will become part of LSI’s display solutions segment on a reporting basis upon the closing of the transaction. In TTM September 2025, Royston generated total revenue of approximately $272 million and adjusted EBITDA of approximately $38 million, or 14.0% of revenue.