LSI Industries completed its $325 million acquisition of Royston (SRR Holdings, Inc.) via reverse triangular merger, funded partly by a new $350 million senior secured credit facility ($200M term loan, $150M revolver) with PNC Bank. The deal expands LSI's retail branding solutions platform, adding Royston's fixtures, signage, and display capabilities.
Key takeaways
Acquisition closed March 24, 2026: $320M cash + $5M LSI common stock (226,227 shares at $22.07/share) for Royston stockholders.
New Credit Agreement: $350M facility ($200M 5-year term loan, $150M revolver expiring March 31, 2031), secured by personal property; optional $75M accordion.
Interest: SOFR/Base Rate + Applicable Margin (initial Level IV: Term SOFR +225bps, Base +125bps); commitment fee 25bps.