According to the company, Hess is increasingly concentrating on the high-growth LED market. The company stated that the portion of its revenues from LED lighting rose from 4.9% in 2009 to 22.6% in 2011.
Hess is a manufacturer of structured and functional outdoor lighting fixtures for street lighting and public spaces as well as architectural and building-related lighting. With the acquisition of emdelight GmbH in March 2012, Hess expanded its product line to include artistically structured lighting solutions. Recent projects realized by emdelight have included illuminating the facade of the Commerzbank's headquarters in Frankfurt, and illuminating the 8.5 km-long Barwa Commercial Avenue shopping centre in Qatar.
In the UK and Ireland, Hess’s entire line of outdoor lighting and site furnishing ranges are marketed and sold by Thorn Lighting, a Zumtobel Group company. This partnership between Hess and Thorn was established in November 2011.
Financial status
The Hess Group generated €68.1 million ($88 million) of (IFRS) revenue in the 2011 financial year, and €5.6 million ($7.2 million) of earnings before interest and tax (EBIT), representing an 8.2% EBIT margin. The company’s revenue growth rate for the first half of 2012 was 39%.
The IPO issue proceeds are to be used primarily to finance further growth. "We are preparing consistently for the IPO, and can launch the process at any time," commented Christoph Hess, CEO of Hess AG, who has been a third-generation manager of this family company since 2007. "Hess is excellently positioned, and is pursuing a clear growth strategy. The IPO represents the ideal financing basis for our company's further expansion. Our innovative and energy-saving LED products enable dynamic growth over the coming years," according to Hess, who also acts as the chairman of the Licht ZVEI sector association.
Hess lighting products are distributed in more than 50 countries worldwide. Its products are manufactured at three production locations in Germany and the US. Hess employed an average of 360 people during the first half of 2012.
