Osram reported that it has agreed to sell LEDvance, its recently-separated general lighting and lamps business to a Chinese consortium for over 400 million euros ($439 million). Osram said that as part of the purchase it will also receive unspecified payments for license agreements of trademark rights. The Chinese buying consortium is composed of financial investor Yiwu State-Owned Assets Operation Center, strategic investor IDG Capital Partners, and Chinese lighting company MLS Co Ltd.
Osram said that the consortium will finance the purchase with equity.
Osram pointed out in a statement that deals with LEDvance’s German employees were safeguarded, and said that part of the agreement was that there would be no change to employee works agreements or social plans until the end of 2018.
According to the statement, “The entire collective agreement and dismissal protection for the German workforce are preserved.”
The Chinese buyers will get LEDVance’s brand and distribution channels in Europe and the United States. LEDVance will continue using the Osram and Sylvania brand names. The consortium will also obtain the LEDvance’s intellectual property rights as part of the purchase.
MLS has also agreed to make an annual purchase of LED chips from Osram once production has started at Osram’s new LED plant in Kulim, Malaysia.
During the 2015 fiscal year, Osram reported that general lighting amounted to around 40 percent of its revenue or approximately 2 billion euros. Osram said that as of July, 1, Ledvance had about 8,800 employees.