Lumileds is sold, the global LED industry pattern will change?

The long delayed LED manufacturers Lumileds finally to find a buyer, the Royal Holland PHILPS company official said, the price will be $2 billion (including debt and debt type project), 80.1% stake sale to American private equity fund Apollo Global Management, LLC (NYSE: APO), PHILPS still holds 19.9% stake in Lumileds, changes in the future for the global LED industry will be how?

The PHILPS CEO (Frans van Houten) 000 haodon Appollo said in private equity funds. (source: PHILPS Philips)

PHILPS owned Lumileds, originally sold to China in the past, such as the Chinese capital based investment team, the U.S. government in the presence of national security issues after the two sides to suspend trading on the. Subsequently, PHILPS will continue to look for new buyers, including buyers in Asia, Europe and the United States, including the negotiations, and the official platform for the new buyer is a considerable number of assets of the Appollo private equity fund. The transaction price, about $2 billion, is expected to complete the transaction in the first half of 2017. PHILPS CEO Frans van pointed out that by this transaction, PHILPS has completed an important phase of the adjustment of the company's product line, but also quite satisfied with the Appollo side Houte Lumileds. Lumileds was isolated from PHILPS in 2015 and operated independently, and its innovation, technology leadership and loyal customer base are the company's main value. Appollo is a private equity fund manages about $189 billion in assets, investment covers nine industries, with considerable industrial experience, how to lead the future Lumileds continue to grow, is the focus of the market at present. LEDinside LEDinside think, because PHILPS still has a 19.9% stake in Lumileds, there is still an important role in the future of Lumileds, Lumileds, R & D team with strong intellectual property rights is an important weapon to the company's existing staff of about nine thousand, and the status of an annual revenues of up to $2 billion, is still in the LED industry of considerable weight company. But from the transaction price and compared to the previous sale price of Jinsha River, less than half, reduced doesn't mean Lumileds value, but they can cooperate with PHILPS to find buyers, and value other possibilities in the future. PHILPS ongoing PHILPS lighting business IPO, the future trend is also very concerned about will be affected. If PHILPS and Lumileds is a group of words, to segmentation and IPO PHILPS lighting business, will have lighting business, lighting system utilities, LED lighting components, vehicle large complex lighting project. But this time PHILPS finally succeeded in the segmentation of Lumileds also sold out, get the cash, PHILPS lighting IPO lighting system is simple and lighting company, the enterprise's profitability is relatively high gross profit, the future also has a good sale price. In other LED chip manufacturers, because Lumileds did not sell Chinese capital but to the capital of the United States, Europe and the United States such as OSRAM and CREE in the commercial competition and will have a different pattern of Asian manufacturers including Taiwan, Japan and South Korea China factory, have the opportunity to seek Lumileds OEM orders or get more space for technical cooperation. Lumileds new gold owners, revenue generated diversified style. Lumileds is expected to will and many lighting companies, car lighting company and consumer electronics manufacturers in close cooperation, supply stable LED components and products, and Appollo private equity fund may combine the comprehensive effect of investment in a pipeline, the key value continue to play Lumileds, and may find more opportunities for cooperation.

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