Cree to Sell Lighting Business to Ideal Industries, Inc.

CREE

Mar 15, 2019

Cree, Inc. has signed an agreement to sell its Lighting Products business unit, which includes the LED lighting fixtures, lamps and corporate lighting solutions business for commercial, industrial and consumer applications, to Ideal Industries, Inc. for approximately US$310 million before tax impacts, including up-front and contingent consideration and the assumption of certain liabilities. Cree expects to receive an initial cash payment of US$225 million, subject to purchase price adjustments, and has the potential to receive a targeted earn-out payment of approximately US$85 million based on an adjusted EBITDA metric for Cree Lighting over a 12-month period beginning two years after the transaction closes.

The agreement continues Cree’s strategy, announced in February 2018, to create a more focused, powerhouse semiconductor company, providing growth capital for Wolfspeed, its core Power and RF business, and equips Cree with additional resources to expand its semiconductor operations. The deal also enables Cree Lighting to gain additional global focus, channel support and investment as it becomes a growth engine for the IDEAL team.

“Cree has made significant progress over the last 18 months in sharpening the focus of our business to become a semiconductor powerhouse in Silicon Carbide and GaN technologies,” says Cree CEO Gregg Lowe. “Over that time frame, we have grown Wolfspeed by more than 100%, acquired the Infineon RF business, more than doubled our manufacturing capacity of Silicon Carbide materials, and signed multiple long-term supply agreements, which, in aggregate, are in excess of $500 million. With the addition of today’s lighting divestiture news, Cree is well positioned as a more focused semiconductor leader.

“Cree’s technologies are at the forefront of the automotive industry’s transition to zero emission electric vehicles, the telecommunications industry’s move to faster 5G networks and the continued ramp up of LEDs for specialty applications. Our leadership in Silicon Carbide and GaN position us well to capitalize on the tremendous advantages that these technologies offer our customers. This transaction provides significant resources to help accelerate Wolfspeed’s growth while providing a terrific growth opportunity for the Lighting Business and its employees through an expanded channel that strengthens its market position. We believe this decision benefits the company and our employees, shareholders and customers as it unlocks value, increases management focus on the core business and supports our mission to accelerate silicon carbide adoption.”

Ideal is a fourth-generation, family-owned, growing global company, serving as a market leader in electric power control and management. Cree Lighting’s portfolio and SmartCast Technology are complementary to Ideal’s advanced control business and channel of suppliers, distributors, agents, and customer relationships.

“Our combined technology and expertise will continue to build on Cree Lighting’s history of leadership and fits with the advanced systems IDEAL has pioneered over the past 103 years,” says Jim James, Chairman and CEO of Ideal Industries, Inc. “Together, we will create a powerful combination of innovation, channel strength and operational excellence. We’re acquiring a very special business poised for sustained success, and we look forward to assisting Cree Lighting in realizing its potential.”
The transaction is expected to close in Q4 fiscal 2019.

For additional product and company information, visit www.cree.com.

Related Articles


Changing Scene

  • LEDVANCE Expands Ontario Presence with New Specification Agent

    LEDVANCE Expands Ontario Presence with New Specification Agent

    LEDVANCE is pleased to announce the appointment of Sterling Architectural Products Ltd. (Sterling Lights) as their new specification agent in Ontario. This partnership strengthens LEDVANCE’s presence in the region and reinforces their commitment to serving the professional lighting design and specification community with innovative, reliable lighting solutions. With decades of experience and a service-driven mindset,… Read More…

  • May 29, 2025 - Eureka Wins Three 2025 Red Dot Awards for Product Design

    Eureka Wins Three 2025 Red Dot Awards for Product Design

    Eureka is pleased to announce that its Velia, Cirra, and Junction luminaires have each received a 2025 Red Dot Design Award for Product Design. It is the 11th consecutive year that Eureka products have been honored with this prestigious award, which is a testament to the company’s consistency and relentless drive to design exceptional luminaires.… Read More…


Design

  • 60-Watt vs 100-Watt Light Bulbs: Brightness & Wattage

    60-Watt vs 100-Watt Light Bulbs: Brightness & Wattage

    With the widespread use of LED light bulbs, the replacement and upgrade of different light bulbs have also made the concept of “equivalent wattage” more and more discussed. When comparing 60-watt vs 100-watt bulb, the wattage and brightness are the factors that need to be figured out first. Wattage is used to measure the energy consumption while many… Read More…

  • What is Human Centric Lighting: Benefits & Applications

    What is Human Centric Lighting: Benefits & Applications

    Human centric lighting (HCL) is a kind of illuminated way based on human physical and psychological needs. Its core goal is to imitate the changes in natural light to support the body’s circadian rhythm, improve visual comfort, and enhance mood. The key element of human centric lighting contains dynamic ​color temperature adjustment, adjustable brightness, spectrum… Read More…


New Products

  • Zaneen: Vieni Giù – Rain of Light

    Zaneen: Vieni Giù – Rain of Light

    Vieni Giù brings a touch of elegance and modernity to any space with its sleek, thin rods suspended from a cable or ceiling mount, each featuring exquisite chrome plating. These rods illuminate every corner like luminescent rain, thanks to the LED double-pin encapsulated in borosilicate glass. Available in various lengths, Vieni Giù can be tailored to… Read More…

  • LightForm: New Saule-L-01 Suspension Luminaire

    LightForm: New Saule-L-01 Suspension Luminaire

    LightForm is thrilled to introduce Saule, the newest lighting collection from Quebec atelier Larose Guyon, now exclusively available at LightForm. Inspired by the gentle grace of the willow tree, Saule is a sculptural light that feels alive. Cascading hand-formed brass leaves shimmer like foliage in the breeze, suspended from arched metal arms that echo the tree’s elegant… Read More…