Cree acquires Ruud Lighting

“Cree is taking another bold step in leading the LED lighting revolution, creating a company that has an unrivaled focus and commitment to driving LED lighting adoption,” said Chuck Swoboda, chairman and chief executive officer of Cree. “Joining Cree was the right thing to do so Ruud Lighting can build on our leadership position; as leaders we create opportunities for everyone,” said Alan Ruud, chairman and chief executive officer of Ruud Lighting. Ruud Lighting will continue to be based in Racine, Wis., and will operate as a subsidiary as part of Cree’s lighting business. Additionally, Alan Ruud has joined the Cree board. Ruud Lighting, through its BetaLED product line, was one of the first traditional lighting companies to transform the majority of its business to LED-based systems. Cree today acquired all of the outstanding stock of Ruud Lighting for an estimated net cost of approximately USD 525 million, comprised of USD 372 million in cash, USD 211 million in stock (valued at today’s market closing price of USD 34.74/share), USD 85 million paid concurrently with the acquisition to retire outstanding debt, offset by tax benefits noted below. The stock portion is comprised of 6'074'833 Cree shares. The acquisition was structured for tax purposes as a deemed asset purchase, which means the cost to Cree will be offset by approximately USD 143 million of expected future tax benefits related to the acquisition.