LSI Industries to Buy Royston Group for $325M, Calls Deal “Transformational” for Retail Solutions Platform

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Sat, February 28, 2026 astatine 5:07 PM CST 6 min read

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LSI agreed to get Royston for $325 million (approximately $320M currency and $5M stock) successful a woody expected to adjacent successful Q3 fiscal 2026; the acquisition terms is astir 8.1x trailing Sep‑2025 Adjusted EBITDA and is backed by a committed span installation with imperishable equity/debt to follow.
Management called the acquisition “transformational,” producing pro forma TTM Sep‑2025 combined gross of astir $864 million and Adjusted EBITDA of ~$95 million, and positioning LSI to perchance scope its fiscal 2028 targets 2 years up of plan.
Royston adds 5 U.S. manufacturing sites (nearly +40% manufacturing capableness and ~900 employees), strengthens vulnerability to refueling/grocery/C‑store markets (~60% of pro forma sales), creates cross‑sell opportunities, and is expected to thrust ~130 bps of pre‑synergy EBITDA borderline enlargement with pro forma borderline ~11% and pro forma nett leverage astatine adjacent “at oregon beneath 3x,” falling to “at oregon beneath 2x” by fiscal 2028.
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LSI Industries (NASDAQ:LYTS) announced it has entered into a definitive statement to get privately held Royston Group, a supplier of individuality and instrumentality solutions for retail environments. The woody was disclosed aft the marketplace closed and discussed connected a league telephone led by Chief Financial Officer Jame Galeese and President and CEO Jim Clark.

Clark described Atlanta-based Royston arsenic a vertically integrated supplier of customized store fixtures, interior and outer signage, and refrigerated and heated lawsuit displays. Royston operates done 5 facilities crossed 4 U.S. states and provides what absorption called a build-to-order solution that includes design, engineering, fabrication, assembly, distribution, and turnkey installation crossed the afloat task lifecycle.

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LSI absorption said Royston’s extremity markets align with LSI’s existing footprint, including refueling, convenience stores, grocery, and quick-service restaurants. Clark said Royston is an established spouse of 3 of the apical 5 C-store and market store chains and 4 of the apical 5 U.S. refueling presumption chains by determination count.

Clark said the acquisition “will beryllium transformational” and could presumption LSI arsenic a scaled level successful branded retail solutions. He said adding Royston expands LSI’s integrated offering into a “one-stop solution-based approach” supporting new-build and remodel programs for retail companies crossed North America.

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