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Cree strengthens position in LED space with Ruud buy

Posted: 22 Aug 2011 ?? ?Print Version ?Bookmark and Share

Keywords:LED? acquisition? energy-efficient lighting?

LED lighting company Cree Inc. has announced that it has acquired all outstanding stock of Ruud Lighting Inc., a manufacturer of LED outdoor lighting. The acquisition cost is approximately $525 million, comprised of $372 million in cash, $211 million in stock (valued at today's market closing price of $34.74/share), $85 million paid concurrently with the acquisition to retire outstanding debt, offset by tax benefits.

"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 chief executive officer of Cree.

According to Cree, the acquisition will allow the company to strengthen its position in the LED lighting market and push forward the adoption of energy-efficient LED lighting. Cree also believes that the move will enable it to expand the market for its LED systems and components. Both companies claim that their shared focus on best-in-class LED-based systems has led to thousands of LED lighting installations over the past several years.

"Joining Cree was the right thing to do so Ruud Lighting can build on our leadership position; as leaders we create opportunities for everyone," said Alan Ruud, chairman and chief executive officer of Ruud Lighting.

Ruud Lighting will continue to be based in Racine, Wisconsin and will operate as a subsidiary of Cree's lighting business. Additionally, Alan Ruud will join 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.

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