DURHAM, N.C. — Cree Inc. announced it will sell Cree Lighting, which provides interior and exterior lighting to auto dealerships, among other verticals, to Ideal Industries Inc. Executives said the deal, which is worth approximately $310 million before tax impacts, continues Cree’s strategy, announced in February 2018, to create a more focused, powerhouse semiconductor company, providing growth capital for core power and RF business, and equips Cree with additional resources to expand its semiconductor operations.
The move also enables Cree Lighting to gain additional global focus, channel support, and investment as it becomes a growth engine for the Ideal team, said Cree CEO Gregg Lowe.
“Cree has made significant progress over the last 18 months in sharpening the focus of our business to become a semiconductor powerhouse in Silicon Carbide and GaN technologies. Over that time frame, we have grown Wolfspeed by more than 100%, acquired the Infineon RF business, more than doubled our manufacturing capacity of Silicon Carbide materials, and signed multiple long-term supply agreements, which, in aggregate, are in excess of $500 million,” Lowe said. “With the addition of today’s lighting divestiture news, Cree is well-positioned as a more focused semiconductor leader.”