Aug 2 - San'an Optoelectronics announced a plan to acquire 100% of Lumileds for $239 million, jointly with Inari Amertron Berhad. The final price will be based on closing date financials and agreements.
The two parties will set up a Hong Kong joint venture via subsidiaries (74.5%-25.5% stakes), with total investment of $280 million covering transaction costs and working capital. Post-deal, San'an will indirectly hold 74.5% and consolidate Lumileds into its financials.
Lumileds focuses on mid-to-high-end LEDs for automotive lighting and camera flashes, with complete technologies, diverse products and a broad client base. However, it has reported losses: $67 million in 2024 and $17 million in Q1 2025, mainly due to low gross margins (7.81% in 2024; 12.06% in Q1 2025) from high costs.
Derived from Philips' business integration, Lumileds is now owned by financial institutions (after equity changes and restructuring) that have no long-term operating intent. It put itself up for sale after divesting non-LED businesses in 2024.
San'an said the acquisition will enrich its product line, secure overseas production bases, access international supply chains via Lumileds' channels, and enable operational improvements with injected resources.
ICgoodFind: Despite Lumileds' losses, San'an's acquisition holds long-term value for global market expansion in the LED sector.
