Cree Completes Sale of its LED Business to SMART Global Holdings

LDS Cree SGH 400

Mar 5, 2021

Cree, Inc. announced it has completed the previously announced sale of its LED Products business unit to SMART Global Holdings, Inc. effective March 1.

SMART will license and incorporate the Cree LED brand name into the SMART portfolio of businesses.

Cree will change its corporate name to Wolfspeed later this year. Under the transaction terms Cree will receive up to $300 million, which consists of a $50 million cash payment at close and a $125 million seller note to be paid upon maturity in 2023. Cree also has the potential to receive an earn-out payment of up to $125 million based on the revenue and gross profit performance of Cree LED in the first full four quarters post-transaction close, also payable in the form of a three-year seller note.

Cree LED will operate as the Cree LED business unit of SGH and will be led by Claude Demby as Senior Vice President (SVP) and President of Cree LED. Mr. Demby most recently served as SVP and General Manager of Cree LED. He joined Cree in 2014 and has held a number of leadership positions including VP Business Development, VP and GM of the LED Chips and Materials business, and SVP of Corporate Development. He brings more than 25 years of executive leadership experience across the LED, automotive, aerospace and materials technology industries.

“The completed sale of Cree LED represents a major milestone in our transformational journey, establishing the company as a pure-play global semiconductor powerhouse, well positioned to lead the industry transition from silicon to silicon carbide,” said Gregg Lowe, Cree CEO.

“The closing of our acquisition of Cree LED represents an important milestone in our growth and diversification strategy,” said Mark Adams, President & CEO of SMART Global Holdings. “Cree LED’s focus on specialty lighting fits well with our other specialty businesses in computing and memory. Cree LED brings outstanding customer relationships, industry leading technology and product development capabilities, plus expansive R&D expertise and strong IP with more than 2,000 patents. 

Source

Related Articles


Changing Scene

  • Acuity Brands Fiscal 2022 Fourth-Quarter And Full-Year Results

    December 6, 2022 Acuity Brands, Inc. (NYSE: AYI) (the “Company”) a market-leading industrial technology company announced net sales of $1.11 billion for the fiscal fourth quarter ended August 31, 2022, an increase of 11.8 percent, or $117.6 million compared to the same period in 2021. Diluted earnings per share (“EPS”) was $3.48 in the fourth quarter of fiscal 2022, an increase of 27.9… Read More…

  • Orion Energy Systems Q2 Revenue, FY’23 Revenue Outlook

    December 6, 2022 Orion Energy Systems is a energy-efficient LED lighting and controls, maintenance service and EV charging station solutions provider out of Wisconsin. Q2 Financial Highlights CEO CommentaryMike Altschaefl, Orion’s CEO, commented, “The first half of our fiscal year was impacted by the continuation of customer project delays which began in the second half… Read More…


Design

  • LIT Lighting Design Awards: Capital Park Landscape, Victoria, BC

    LIT Lighting Design Awards: Capital Park Landscape, Victoria, BC

    December 5, 2022 Located in one of Victoria’s most historic neighborhoods, the Capital Park Mixed-Use Development is made up of seven buildings stretching across three lots and is responsible for nearly an entire city block of Victoria’s downtown core. The project took place over the span of three phases and eight years. The first phase… Read More…

  • Smith + Andersen Toronto 2022 IES Award Winning Projects

    Smith + Andersen Toronto 2022 IES Award Winning Projects

    December 5, 2022 This year, the Smith + Andersen Lighting Team received the Toronto IES 2022 Illumination Section Award and the IESNA Illumination Award of Merit for two projects: Grasett Park (Exterior Lighting Design), and St Paul’s Church (Interior Lighting Design). Each of these Toronto-based projects demonstrate a level of design excellence expected by the… Read More…


New Products

  • Stanpro Retro 5 CCT Selectable Downlight

    Stanpro Retro 5 CCT Selectable Downlight

    December 1, 2022 This Retro LED downlight offers a simple and economical retrofit solution for all traditional recessed applications. Easy installed with a quick connects wire and the E26 socket adaptor, this LED downlight is ideal for retrofitting into most of traditional 4″ and 5″-6″ housings, it will be installed in no time. The color… Read More…

  • Eureka Introduces Tangram-Trace Architectural Luminaire

    Eureka Introduces Tangram-Trace Architectural Luminaire

    November 30, 2022 Eureka announced the release of its Tangram-Trace architectural luminaire. Using bold straps and a prismatic lens, Tangram-Trace creates a dramatic aesthetic and provides high quality, diffused linear illumination. It is intended for modern environments such as conference and executive areas, hospitality applications, or reception spaces. Tangram-Trace luminaires are suspended using four-inch-wide straps,… Read More…