Signify has announced it has agreed to acquire a 51% stake in Zhejiang Klite Lighting Holdings Co. Ltd.
The Zhejiang, China-based company is one of the leading providers of high-quality, cost-efficient LED lamps and luminaires. The transaction will bring additional scale and innovation power to Klite Lighting, allowing it to generate further cost efficiencies and enhance its product development, including connected lighting offerings.
“We are very excited to strengthen our partnership with Signify, whose market-leading position and state-of-the-art technology will form a great synergy with our know-how,” said Yanwei Shen, chairman of Klite Lighting. “In addition, we’ll continue to provide products and services to existing and new customers, with whom we’re committed to further develop strategic partnerships.”
“We’re pleased to join forces with Klite Lighting as this move will strategically strengthen our position in the supply chain of LED lamps and luminaires,” said Rowena Lee, business group leader LED at Signify. “Our combined expertise, innovation power and distribution scale will help to deliver cost-efficient innovations to customers faster, including connected lighting offerings. In addition, this acquisition will allow us to capture value from the growing private label segment.”
Klite Lighting has been one of Signify’s main suppliers of LED lamps and luminaires for many years. In addition, the company manufactures a wide range of LED lamps and luminaires for a large, global customer base, which generated around EUR 250 million in sales to third parties in 2018.
The transaction, which is subject to customary closing conditions, is expected to close in the second half of 2019, after which Klite Lighting will continue to operate as a standalone entity.