Durham, N.C.-based Cree Lighting, Inc. has purchased Ruud Lighting, Inc. of Racine, Wisc., at an estimated net cost of approximately $525 million.
The acquisition creates a leadership position in indoor and outdoor LED lighting, accelerating the adoption and expansion of 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 Ruud’s presence in the lighting systems market, Cree gains additional knowledge and expertise to develop the next generation of LED components.
“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, chairman and CEO of Cree.
“Joining Cree was the right thing to do so Ruud Lighting can build on our leadership position; as leaders we create opportunities for everyone,” added Alan Ruud, chairman and CEO of Ruud Lighting.
Ruud Lighting and its nearly 800 employees will continue to be based in Racine and will operate as a subsidiary of Cree’s lighting business. Additionally, Alan Ruud has joined the Cree board.
Ruud Lighting, through its BetaLED® product line, was one of the first traditional lighting companies to transform the majority of its business to LED-based systems.