Light Science Tech secures distribution deal with Gavita International

(Sharecast News) - Light Science Technologies announced on Monday that it has secured a distribution framework agreement with Gavita International, granting it exclusive rights to sell Agrolux Nederland's horticultural LED lighting systems in the UK and Ireland. The AIM-traded firm said the agreement, initially covering 2025, also allowed for potential expansion into other European markets.

It said the deal would strengthen its presence in the controlled environment agriculture (CEA) sector, complementing its existing nurturGROW lighting range with Agrolux's patented LED Wega products.

The company said it was aiming to leverage its expertise, sensor technology, and installation capabilities to enhance its offering to commercial growers.

As the partnership developed, Agrolux was expected to reciprocally sell Light Science's products through its global network.

The agreement would expand Light Science's market reach, with quoted pipeline opportunities for glasshouse lighting systems currently standing at £4.6m in the UK and £5.7m in Europe.

It would bring the company's total quoted CEA pipeline to £42.5m.

Light Science said it would seek to convert these opportunities by drawing on Agrolux's agronomy expertise and two decades of industry experience.

Agrolux, based in the Netherlands, is part of Gavita International, which is ultimately owned by Scotts Miracle-Gro, a US-listed lawn and garden products company with a market capitalisation of $3.9bn.

Its LED Wega system was described by the board as one of the most compact and energy-efficient horticultural lighting solutions available, with an integrated powerline dimming solution that reduces infrastructure requirements.

Light Science said it would showcase its technologies and expanded product range at its upcoming capital markets day in London on 26 February.

"We are delighted to have established this distribution agreement with such a prestigious partner that is part of the Scotts Miracle-Gro group," said chief executive officer Simon Deacon.

"The opportunity to work with Argolux and provide an expanded product range to existing and new clients provides an exciting opportunity for us to target a wider end audience.

"This partnership presents significant potential future benefits for us to expand our global presence and reach as we work on complementary opportunities."

Deacon said the company was focussed on low-cost and low-risk entry into high-growth markets with partners that were already embedded in the industry, enabling it to target global customer bases actively seeking CEA products and solutions.

"With Agrolux being part of a multinational global entity, we are extremely excited by the opportunities this relationship presents."

At 1322 GMT, shares in Light Science Technologies Holdings were down 1.18% at 2.52p.

Reporting by Josh White for Sharecast.com.