Siteco takeover fuels Osram flotation speculation

Osram’s purchase this month of Siteco has fuelled speculation in the industry that Osram itself will be sold imminently by its parent Siemens.

The addition of the technical German fitting maker Siteco – from Barclays Private Equity for an undisclosed sum – fills out Osram’s luminaire offering and makes it more attractive to potential investors.  It also makes Osram’s offer more comparable to rival Philips, which has increased its vertical integration with a string of luminaire brand purchases.

It’s believed that Siemens will float Osram in an IPO rather than attempt an outright sale. Osram – valued at around £5 billion – isn’t seen as part of Siemens’ core business.

The purchase of Siteco is also part of the wider trend towards integration which has seen traditional lamp makers buy luminaire brands.

In 2008 Osram bought Traxon, and competitor Philips has added a string of luminaire brands in recent years including Genlyte in 2007 and Luceplan last year.

Siteco sells £188 million-worth of fittings a year, and is especially strong in office, technical and exterior and amenity lighting. It has a workforce of 1,250.

LEDs are key to growth, says Goetzeler

‘A leading manufacturer of lighting components, we are now also further expanding our competencies in the solution business,’ Osram chief Martin Goetzeler told the press. ‘This applies to conventional energy-saving lighting technology and in particular to LED-based luminaires and systems, where we are expecting the greatest growth.’

Siteco chief Klaus-Günter Vennemann told Lux: ‘That Osram has expressed confidence in our expertise shows that we adopted the right course. This deal allows us to access new markets and become a global player.’

Siteco’s showroom in southern Germany

Siteco’s showroom in southern Germany

Siteco makes fittings in both Germany and China and has more than 15 sales companies in Europe, including one in Manchester headed by Peter Stanway.

Siteco has an impressive project portfolio, including the Allianz Arena in Munich, Barajas Airport in Madrid and the Taipeh Tower in Taiwan.

The global lighting market for components, luminaires and lighting systems is estimated by analysts to be worth about £38 billion, over two-thirds of which is accounted for by luminaires and lighting systems. Driven by LEDs, the total market is expected to grow to about £55 billion by 2016.

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