Cree Closes Sale of Cree Lighting to Ideal Industries
Cree, Inc. reported that it has concluded the sale of its Lighting Products business unit, Cree Lighting, to Ideal Industries, Inc. The transaction includes the LED lamps, lighting fixtures, and corporate lighting solutions business for industrial, commercial, and consumer applications. The transaction, which was reported on March 15, has closed and gone into effect. The $310 million compensation for the sale included up-front and contingent consideration and the assumption of certain liabilities.
"This represents a pivotal chapter for Cree as we sharpen our focus to become a semiconductor powerhouse in silicon carbide and GaN technologies," said Gregg Lowe, CEO of Cree."Cree's technologies are helping to power major transitions in our economy, whether it's the automotive industry's transition to electric vehicles or the telecommunications sector's move to faster 5G networks. Our leadership in silicon carbide and GaN positions us well to help customers improve performance and realize greater efficiencies."
The company plans to use the proceeds from the sale to stimulate the growth of its power and RF business, Wolfspeed and expand its semiconductor operations.
Cree recently announced plans to invest up to $1 billion to expand its silicon carbide capacity to meet the increasing demand for silicon carbide and GaN-on-silicon-carbide technologies.
The expansion includes the development of an automated 200mm silicon carbide fabrication facility and setting up a materials mega factory at its U.S. campus headquarters in Durham, North Carolina. The capacity expansion is expected to help meet the demand for wide bandgap semiconductor technologies within the automotive, communications infrastructure, and industrial markets.