IDG-led consortium completes buyout of Osram unit
A Chinese consortium led by IDG Capital has completed the purchase of Ledvance, the lamps business of German lighting manufacturer Osram, for approximately EUR500 million ($527 million).
Other consortium members include Chinese lighting company MLS, Yiwu State-Owned Assets Operation Center and Everbright-IDG Industrial Fund, a joint venture vehicle launched by IDG and China Everbright. The group agreed last July to acquire the business for over EUR400 million, with Osram set to receive a further EUR100 million from trademark licensing.
Ledvance produces LED lamps for professional users and retail customers, as well as a range of traditional light sources and connected lighting solutions. It operates in over 120 countries, and contributed about EUR2 billion - or 40% - of Osram's revenue in the 2015 financial year. Osram's lighting products are used in virtual reality, autonomous driving, mobile phones and buildings.
“What drives us as the majority owner within the investment consortium, is to leverage our global investment expertise and resources to help Chinese companies and long-established companies from developed markets make the most out of their joint market potentials," Antony Yu, a partner at IDG Capital, said in a statement.
Under the new ownership, Ledvance will focus on developing its specialty lighting, lighting solutions and semiconductor offerings. As part of deal, MLS may purchase LED chips from Osram’s plant in Malaysia, according to a seperate statement.
Yiwu provides financing and capital management for the state-owned companies in Yiwu city in Zhejiang province. It manages more than EUR4 billion in net assets.
Founded in 1993, China-based IDG Capital has invested in more than 500 companies and achieved over 120 exits. In January, the Chinese investor took a controlling stake in IDG Ventures, the global investment business of International Data Group (IDG) as part of a joint acquisition of IDG with privately held conglomerate China Oceanwide Holdings Group. China Everbright also participated in the acquisition of IDG Ventures.
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