Cree acquires lighting manufacturer Ruud and BetaLED subsidary
17 Aug 2011Cree has acquired Ruud Lighting, including its specialist LED brand BetaLED, for $525 million and plans to operate the acquisition as subsidiary of Cree Lighting.
Durham, NC-based Cree Inc acquired Ruud Lighting through a stock and cash transaction valued at approximately $525 million. The companes have a history of partnership in pushing the adoption of LED-based solid-state lighting (SSL), and Cree plans to operate Ruud and its BetaLED brand as a subsidiary of Cree Lighting.
Cree says that its motivation for the acquisition exactly matches the company‘s stated mission of accelerating the deployment and market acceptance of SSL. Chuck Swoboda, Cree‘s chairman and CEO 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."
Cree and BetaLED have been close partners over a number of years, with the latter using many Cree LEDs in its fixtures. BetaLED will bring a greatly expanded sales channel for Cree Lighting‘s system products.
Ruud will continue to operate from its Racine, WI headquarters with more than 800 employees joining Cree. Alan Ruud has joined the Cree board of directors. The acquisition includes $372 million in cash, and stock valued at $211 million based on Wednesday‘s closing market price of $34.74.
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