In what may be one of the more interesting acquisitions in the lighting business this season, Cree Inc., Durham, N.C., announced that it's acquiring privately held lighting fixture manufacturer Ruud Lighting, Racine, Wis., for a net outlay worth approximately $525 million in combined cash and stock.
Among the benefits cited by Cree when the deal was announced today were Ruud's position in the market for LED outdoor lighting and its sales organization.
"This acquisition creates a market leader for indoor and outdoor LED lighting, accelerating adoption and expanding the market for both Cree's LED systems and components. Other synergies include increased access to the lighting market through expanded sales channels and operating leverage from increased economies of scale. Through a broader presence in the lighting systems market, Cree gains additional knowledge and expertise to develop the next generation of industry-leading, lighting-class LED components," the release stated.
Ruud will stay in Racine as a division of Cree Lighting and Alan Ruud takes a seat on Cree's board. More to come.