Osram to Sell Lamp Business to Consortium Based in China
July 28, 2016
Osram Licht AG has announced it will sell its lamp business unit, Ledvance, to a China-based consortium comprising LED packaging service provide MLS, strategic investor IDG Capital Partners, and Yiwu State-owned Assets Operation Center. Osram had indicated it would sell the unit over a year ago.
The consortium is purchasing the business for more than EUR400 million (US$441 million). The transaction is expected to close in fiscal 2017.
Under the agreement, Osram will receive additional payment for licensed use of its trademark rights. Ledvance will continue to use the Osram brand in the international market and the Sylvania brand in the North America market, and maintain the lamp business unit’s existing R&D staff and all employees until the end of 2018.
The sale will allow Osram to focus on the automotive industry and lighting solutions for buildings and cities. In a similar move, this spring Philips sold a 25% stake in its general lighting business for EUR750 million.
