ams OSRAM sells entertainment and industrial lighting business for NT$900 million
At the end of April this year, when ams OSRAM announced its first-quarter results, it also announced an accelerated debt optimization plan, with the goal of reducing the ratio of net debt to adjusted earnings before interest, taxes, depreciation, and amortization to less than 2.
Its plan includes: continuing to implement the "Re-establish the Base (RtB)" strategy to promote the growth of the core semiconductor business and improve free cash flow performance; sell the 8-inch wafer fab in Malaysia and eliminate the related sale and leaseback (SLB) liabilities; extend the revolving credit line (RCF); evaluate and dispose of multiple assets to achieve asset realization gains of more than 500 million euros.
Recently, ams OSRAM implemented the first asset sale in its accelerated debt optimization plan.
On July 29, ams OSRAM announced that it would sell its Entertainment & Industry Lamps (ENI) business to Japanese optical technology company Ushio for 114 million euros (approximately RMB 900 million).
The transaction is expected to be completed in the first quarter of 2026, and approximately 500 employees will be transferred to Ushio along with the business. ams OSRAM aims to achieve asset disposal gains of more than €500 million through a series of initiatives including this transaction.
ams OSRAM said that after successfully extending its credit line and issuing additional senior notes, the company continued to implement its debt acceleration optimization strategy through its first asset sale. Ushio is the ideal home for the company's high-end specialty lighting niche business, which will allow the company to further focus on its core markets and streamline its product portfolio.
It is reported that the ENI business sold by ams OSRAM this time covers special lamps for infrastructure and cinema applications, as well as high-end light sources for semiconductor wafer manufacturing equipment. The business achieved revenue of approximately €170 million in 2024.
The business acquirer, Ushio, was founded in 1964 and is headquartered in Japan. The company mainly produces and sells lamps, lasers, LEDs and other light sources in the ultraviolet, visible and infrared light bands, as well as optical and imaging equipment equipped with the above devices. Ushio has a high market share in the industrial process field (including the manufacturing of semiconductors, flat panel displays, electronic components, etc.) and the visual imaging field (such as digital projection, lighting, etc.).
It is worth noting that since the merger in March 2021, ams OSRAM has sold multiple LED lighting related businesses:
From 2021 to 2022, ams OSRAM will successively sell LED drive power, intelligent lighting, plant lighting, automotive lighting, and architectural lighting application businesses. Its purpose is to focus on the development of core technology areas such as light sources, visualization and sensing after the acquisition of Osram, and to divest non-strategic core businesses.
The purpose of the sale of ams OSRAM's ENI business is to accelerate the implementation of the debt optimization plan. In the future, ams OSRAM may continue to sell non-core semiconductor and optical assets and other businesses.
In the context of the "Re-establish the Base (RtB)" strategy and the implementation of plans such as accelerating the optimization of debt plans, ams OSRAM's performance continues to improve. Recently, ams OSRAM announced its preliminary performance results for the second quarter of 2025.
During the reporting period, ams OSRAM’s revenue reached 775 million euros (approximately RMB 6.12 billion), a decline from the previous month. But on the other hand, its adjusted profit before interest, tax, depreciation and amortization was 145 million euros, and its adjusted profit before interest, tax, depreciation and amortization was 18.8%, both increased quarter-on-quarter; its free cash flow was -14 million euros, which improved from the first quarter.
Looking forward to the third quarter, ams OSRAM expects revenue to be between 790 million euros and 890 million euros; with the continued implementation of the "reshaping the foundation" strategy, the adjusted profit margin before interest, taxes, depreciation, and amortization is expected to increase to 19.5% (±1.5%). (Text: LEDinside Irving)
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