Cree to sell its lighting business

Cree is selling its Lighting Products business unit – which includes its LED lighting fixtures, lamps and corporate lighting solutions business – to IDEAL Industries Inc for around $310 million.

The agreement is part of the strategy announced by Cree in February 2018 to become a more focused semiconductor company centred on its Wolfspeed subsidiary.

“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,” said Gregg Lowe, CEO of Cree. “Over that time frame, we have grown Wolfspeed by more than 100 percent, acquired the Infineon RF business, more than doubled our manufacturing capacity of Silicon Carbide materials, and signed multiple long-term supply agreements.

“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.”

IDEAL is a family-owned company in electric power control and management. Cree Lighting’s portfolio and SmartCast Technology are complementary to IDEAL’s advanced control business.

“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,” said Jim James, Chairman and CEO of IDEAL.

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