OSRAM Licht AG recently announced it has approved the sale of Ledvance (formerly OSRAM SYLVANIA), its general lighting lamps business.

The buyer is a Chinese consortium consisting of the strategic investor IDG Capital Partners (IDG), the Chinese lighting company MLS Co., Ltd. (MLS) and the financial investor Yiwu State-Owned Assets Operation Center (Yiwu).

The purchase price amounts to more than €400 million. OSRAM will additionally receive payments for license agreements of trademark rights. The transaction, subject to regulatory approval and certain conditions, is expected to close in the course of fiscal 2017.

Strategically, Ledvance is able to develop a cooperative worldwide footprint with MLS. Ledvance’s products and those of MLS target different users in different territories in emerging and developed markets.

“The new ownership strongly supports the Ledvance strategy and will lead to a number of advantages for Ledvance and our customers. We will gain access to a more cost efficient supply chain for LED Lamps and luminaires and can continue to uphold our quality standards. Furthermore, we will strengthen our sales opportunities in Asia and especially in China,” said Jes Munk Hansen, CEO of Ledvance. Jes Munk Hansen and the management team of Ledvance will remain in place following the closing of the transaction.