Signify is acquiring a 51 percent stake in Zhejiang Klite Lighting Holdings Co Ltd, one of the world’s leading providers of high-quality, cost-efficient LED lamps and luminaires.
The deal will allow Klite to save costs and enhance its product development, including connected lighting offerings. “We are very excited to strengthen our partnership with Signify, whose market-leading position and state-of-the-art technology will form a great synergy with our know-how,” said Yanwei Shen, Chairman of the Chinese company.
“In addition, we’ll continue to provide products and services to existing and new customers, with whom we’re committed to further develop strategic partnerships.”
According to Rowena Lee, Business Group Leader LED at Signify, the move will strategically strengthen Signify’s position in the LED supply chain for lamps and luminaires. “Our combined expertise, innovation power and distribution scale will help to deliver cost-efficient innovations to customers faster, including connected lighting offerings.
“In addition, this acquisition will allow us to capture value from the growing private label segment.”
Klite Lighting has been one of Signify’s main suppliers for many years. The company also manufactures a wide range of LED lamps and luminaires for a global customer base worth around €250 million in sales to third parties last year.
The transaction is expected to complete in the second half of 2019, after which Klite Lighting will continue to operate as a standalone entity.
Signify has just reported a decent second quarter, with total sales of €1.5 billion representing a small like-for-like increase and net income improving by a dramatic 73 percent to €50 million.
Signify’s installed base of connected light points increased to 50 million in Q2 from 47 million in Q1.