Recently, Cree the famous semiconductors, LED and lighting products developer has announced that it is planning to sell its lighting products business unit (“Cree Lighting”), which includes LED lighting fixtures, lamps and corporate lighting business for commercial, industrial and consumer applications, to Ideal Industries for approximately $310 million before tax impacts.
The deal is scheduled to be completed in 4Q, 2019. Cree is expecting to receive an initial cash payment of $225 million, subject to purchase price adjustments, and has the potential to receive a targeted earn-out payment of approximately $85 million based on an adjusted EBITDA metric for Cree Lighting over a 12-month period beginning two years after the transaction closes.
Over a period of last eighteen months, Cree has made drastic progress in turning their focus of the business to become a semiconductor powerhouse in Silicon Carbide and GaN technologies.
In the massive developments which include automotive industry’s transition to zero emission electric vehicles, telecommunications industry’s move to faster 5G networks and continued innovation in LEDs for speciality applications, Cree technologies has played a leading role. Their leadership in Silicon Carbide and GaN puts them on the apt position to capitalise on the abundant advantages that these technologies offer customers.
