LED maker Cree Inc. said on Wednesday that it acquired LED outdoor lighting supplier Ruud Lighting Inc. in a cash and stock worth about $525 million.
Cree (Durham, N.C.) said the acquisition would accelerate adoption and expanding the market for 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, Cree said.
“Cree is taking another bold step in leading the LED lighting revolution, creating a company that has an unrivaled focus and commitment to driving LED lighting adoption,” said Chuck Swoboda, Cree’s chairman and CEO, in a statement.
Cree said it acquired all of the outstanding stock of Ruud Lighting for an estimated net cost of approximately $525 million, comprised of $372 million in cash, $211 million in stock and $85 million paid concurrently with the acquisition to retire outstanding debt, offset by tax benefits. The stock portion is comprised of 6,074,833 Cree shares, the company said.
Ruud Lighting will continue to be based in Racine, Wis., and will operate as a subsidiary as part of Cree’s lighting business, Cree said. Alan Ruud, chairman and CEO of Ruud Lighting, has joined Cree’s board of directors, the company said.