Revolution Lighting Plunges 20%, Company Announces Stock Offering To Finance A $10 Million Acquisition

Shares of Revolution Lighting Technologies Inc RVLT, a provider of advanced LED lighting solutions, plunged 20 percent Tuesday morning after the company announced a common stock offering to finance an acquisition.

Revolution Lighting plans on offering 2.775 million shares of its common stock at a price of $5.25 per share. The offering price represents a discount to Monday's share closing price of $6.91.

Revolution Lighting expects to receive proceeds of $13.4 million and will use the funds to finance an acquisition which was announced on Monday. The company agreed to acquire TNT Energy, LLC, a full-turnkey services provider that addresses energy savings projects within the commercial, industrial, and other sectors.

As part of the acquisition agreement, Revolution Lighting will pay $10 million to acquire 100 percent of TNT Energy. The company expects the acquisition to be accretive to its earnings per share in the bottom half of 2016 and also provides a "direct complimentary fit" with its already existing business.

"We are excited to welcome TNT Energy as the latest addition to our company, expanding our comprehensive "full turnkey" service capabilities throughout Massachusetts and the northeast to drive future growth and incremental revenue," said Robert V. LaPenta, CEO and Chairman of Revolution Lighting. "TNT's extensive market experience in lighting and energy management solutions will allow Revolution Lighting to continue to provide leading services to customers, partnering to maximize project benefits including energy savings, environmental and individual well-being."

"We are excited to welcome TNT Energy as the latest addition to our company, expanding our comprehensive "full turnkey" service capabilities throughout Massachusetts and the northeast to drive future growth and incremental revenue," said Robert V. LaPenta, CEO and Chairman of Revolution Lighting. "TNT's extensive market experience in lighting and energy management solutions will allow Revolution Lighting to continue to provide leading services to customers, partnering to maximize project benefits including energy savings, environmental and individual well-being."