LSI Industries Inc. (LYTS) said it has agreed to acquire privately held Royston Group for about $325 million.
Under the terms of the agreement, LSI will pay about $320 million in cash at closing and $5 million in company stock, subject to a working capital adjustment. The transaction is expected to close in the third quarter of LSI's fiscal 2026, pending regulatory clearance.
Atlanta-based Royston provides custom store fixtures, signage, and display solutions for retail environments across sectors, including convenience stores, grocery, and quick-service restaurants. The company operates five facilities in the U.S. and employs nearly 900 people.
LSI said the acquisition will strengthen its display solutions segment, broaden its product offerings, and enhance its position in high-growth retail verticals. The combined business is expected to generate pro-forma trailing revenue of about $864 million and adjusted EBITDA of roughly $95 million.
The deal is expected to be accretive to margins and earnings per share following closing. The deal will be financed through a mix of debt and equity.
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