The companies’ shared focus on best-in-class LED-based systems has led to thousands of LED lighting installations. The acquisition allows for the increased access to the market through expanded sales channels.
Chuck Swoboda, Cree chief, said: ‘Cree is taking another bold step in leading the LED lighting revolution, creating a company that has an unrivalled focus and commitment to driving LED lighting adoption.’
Ruud manufactures commercial and residential fixtures and a growing line of LEDs. Ruud products are sold through various channels in locations worldwide.
Around 800 Ruud employees across the globe will become Cree employees. They will continue as before, working on the same projects and sales, simply under a new name.
The deal went ahead comprising of about £225million in cash and £127million in stock (valued at £21.02/share).
Comments from Gordon Routledge:
This is a brave, although expensive, move for Cree.
The company would argue that most large lighting companies are vertically integrated and have fixture and OEM component business. Cree has been seen, by OEMs, as the friendly company without a conflict of producing its own LEDs, but it’s frustrated by the levels of general adoption of LEDs in the lighting market.
Ruud’s LED business has grown to represent around 50 per cent of its £121.5 million from a standing start in 2007.
This deal follows on from Philips purchase of WRTL parent INDAL, a european leader in driving led street lighting innovation.
For more insight from the LED Master, check out his blog: LED Insider.