Heavy! GE lighting officially entered the auction process

A long delayed GE lighting recently came up for sale message.

The news GE lighting business sale is not the first day, after several twists and turns, recently seemed to see a glimmer of light. According to LEDinside, GE lighting sale is about to enter the bidding process. The deal, will have the opportunity to put the general lighting business GE, CURRENT systems and intelligent lighting solutions company sale package. Part of the financial institutions to assess the value of its assets may fall in about 6~8 million. Of course, still need to the trademark license period, and GE brand coverage to determine the final value.

Overview of GE lighting business

* source: LEDinside finishing

GE founder Edison invented the light bulb in the past more than 100 years ago, the GE brand is almost equal to the lighting. However in recent years by LED transformation and lighting business is not successful, the proportion of revenue and profit of the GE group is not high, so GE long ago to dispose of non core business such as lighting. However, despite past sale rumors, but the sale remained in the thunder stage, the main reason is that in the past the lighting industry's high valuation, plus GE for the sale of the lighting business attitude is always wavering. In the former GE CEO Jeff Immelt (Jeff Immelt) of the decision, or to accelerate the sale of GE lighting business on the way forward.

In order to make it easier for buyers to take over the lighting business, within GE after more than a year of asset restructuring and after the split, the current GE lighting factory only 6 factories. Part of the financial institutions to assess the value of its assets may fall in about 6~8 million. Of course, still need to the trademark license period, and GE brand coverage to determine the final value.

Because GE lighting is still a strong channel brand in North America, is expected to will attract many Chinese LED and lighting manufacturers compete. According to LEDinside, the potential buyers intention includes both lighting companies, started from the traditional lighting field include Topstar, Feile, Yankon, of course, from the perspective of LED lighting, such as Linsen optoelectronics. In the past, dwell in the LED and lighting a merger of equity capital predators, such as Jinsha River, IDG never absent.

In the integration of global lighting industry era, several former PHILPS, LEDVANCE to GE has been set to become one of the few changes in the global lighting industry layout opportunity. What GE lighting will eventually gets? The answer will have to wait until after the bid to be announced before, only a simple assessment, so that various luxury male GE lighting assets reason.

The traditional lighting manufacturers

Acoustics

Although Shanghai has the famous Ya Ming audio lighting brand, but it belongs to the Chinese local brands, so there is always a global brand Feile dream. 2015, Feile finally from Havells Holding acquired the Sylvania SYLVANIA brand, the official from the Chinese stepped out of the overseas market. However, access and brand Sylvania Feile acquired the right to use, is still only in Europe and India. Brand and channel SYLVANIA in North America long before 1993 attributable to OSRAM. So if we can win GE audio lighting brands and channels, the gap will make up the puzzle.

Topstar, Yankon

From the traditional lighting OEM era has deep grasp the lighting industry, and rich manufacturing experience, accumulated a solid lighting products production capacity, but the channel and sales are held in the hands of customers, the past can only earn low profits for the OEM, brand dream round.

However, the biggest difference is that in the past every lighting OEM camp system is slightly different. In order to Topstar as an example, the past is mainly GE the main OEM supplier, so the natural lighting business for GE is very familiar with, once the bid after the success of cultural integration problems may be smaller. As for the past Yankon, as the main OEM PHILPS lighting, then if the bid is successful, how to deal with PHILPS lighting OEM cooperation, will be no small challenge.

LED lighting manufacturers

Sanan Optoelectronics

Sanan optoelectronics has been focused on the upstream chip, with LED chip production capacity is more and more big, eventually need to find a way out for its large chip production capacity. Although the shares of fengzhuangchang, allied with the downstream of the movement continued, however, to the downstream sea control efforts are limited, strong product competitiveness while strong profitability, but did not form a strong brand influence. The lack of downstream brand and channel is the essential difference between three dynasty and the Samsung Empire, through the acquisition of GE lighting, most of the problems of patent and brand channel may be able to complete a one-time settlement, the core assets of the expansion of territory, a key step to an empire.

Rawlinson

The past has Linsen successful acquisition of LEDVANCE's successful experience, but also because of the acquisition, M.L.S. in North America have access LEDVANCE, and OSRAM Sylvania of the two strong brands. M.L.S. shisuizhiwei, of course, know that behind these hundred years brand contains the market value. Although, Linsen has two major brands in the North American market, but these brands are still biased consumption path lighting type. If successful acquisition of GE lighting, will contribute to the complement system and the standard case in the North American lighting business, and integrated business scale is expected to become the first North American market. Our commitment to the global top two lighting industry group targets are one step closer.

Equity investment fund

Jinsha and IDG

Although the Jinsha River in mergers and acquisitions at Lumileds because the U.S. government blocked encounter crashed the pain, but in the face of GE lighting asset sale opportunity, still tempted profit impulse. Jinsha River investment in the LED industry project is comprehensive, but the downstream investment projects has always been very successful, if they can be included in GE lighting, GE lighting is likely to re integration as the core assets of a number of investment projects in LED industry, to live with the overall effect.

IDG investment in the LED industry is relatively concentrated, the current downstream on the shareholding were Huacan, Hongli and rawlinson. Great profits in the acquisition of LEDVANCE IDG in the process of the United States, naturally will not miss the main battlefield of the subject. Then GE lighting in the bag, or whether it is incorporated into the listed company, and then reselling, and ultimately make a good chance, naturally can not miss.

Postscript:

Although Chinese manufacturers public bidding intention, they also have extraordinary strength. However, a sensitive moment in Sino US trade war, whether the company can Chinese from Trump hands smooth bite under the U.S. Centennial lighting brand this hoe, remains to be seen. From the industry point of view, the re combination of assets, re allocation of resources, is conducive to the industry, is conducive to capital but also conducive to the consumer, it is Lang affectionate concubine intention. However, regulatory hand will not be in the name of national security but also break up affectionate couples There's no telling.

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