MUNICH & WILMINGTON, Mass.--(BUSINESS WIRE)--As part of the three-pillar strategy announced last November, Osram is further expanding the leading position of its Specialty Lighting (SP) business. The company has agreed to acquire Novità Technologies, a U.S. manufacturer of automotive LED modules which are used particularly in tail lights, fog lights and daytime running lights. The acquisition will immediately be margin-accretive in the Specialty Lighting segment. Novità Technologies, a successful company based in Hendersonville, Tennessee, has annual sales of over 40 million euros, with around 100 employees and ships mainly to headlight and tail light manufacturers in the United States. Both parties have agreed not to divulge any financial details of the transaction, which is planned to be completed by October 2016. “The purchase of Novità Technologies is an outstanding addition to our project and system business and at the same time strengthens our position on the important U.S. market”, said Hans-Joachim Schwabe, CEO of Osram's Specialty Lighting business unit.
As technological changes continue to take place around LEDs the requirements of manufacturers in the automotive industry are also changing with regard to the design and functionality of light. As a result, there is increasing demand for complete systems and modules rather than for the pure light sources. A successful example is the Ford F-150, for which Osram has developed a complete LED-based front lighting system comprising low and high beam, turn indicators, parking light and control module. By purchasing Novità Technologies, Osram is complementing its successful LED module business with regard to the tail light and forward auxiliary lighting such as fog lights and daytime running light.
The global market for LED modules for front and rear lights is forecast to increase by an average of 20 percent per year by 2020. Novità Technologies is very well positioned in this sector, particularly in the USA, and is therefore an excellent addition to Osram in terms of both the regional market and the LED automotive portfolio for project and system business. The company, which was founded in 2007 as an asset management buyout, has recorded rapid and successful growth in the last three years and has a high level of engineering and manufacturing know-how specifically in the LED module business.
OSRAM, based in Munich, is a globally leading lighting manufacturer with a history dating back more than 100 years. The portfolio ranges from high-tech applications based on semiconductor technology, such as infrared or laser lighting, to smart and connected lighting solutions in buildings and cities. OSRAM had around 33,000 employees worldwide at the end of fiscal 2015 (September 30) and generated revenue of almost €5.6 billion in that fiscal year. The company is listed on the stock exchanges in Frankfurt and Munich (ISIN: DE000LED4000; WKN: LED 400; trading symbol: OSR). Additional information can be found at www.osram.com.
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