The consortium is led by the strategic investor IDG Capital, the Chinese LED packaging major MLS Co Ltd, and financial investor Yiwu State-Owned Assets Operation Center.

German lighting giant Osram Licht AG has completed the sale of its one-year-old general lighting subsidiary LEDVANCE GmbH to a Chinese investment consortium for €500 million, the company said in a press release.

The consortium is led by the strategic investor IDG Capital, the Chinese LED packaging major MLS Co Ltd, and financial investor Yiwu State-Owned Assets Operation Center.

“The sale of Ledvance to a Chinese consortium was successfully completed effective March 3, 2017. This follows the parties obtaining all necessary approvals from the relevant authorities. The final selling price is around €500 million,” said Osram CEO Olaf Berlien.

LEDVANCE and MLS will focus on leveraging synergies. The former will gain access to latter’s cost-efficient LED components for LED product portfolio, and will be able to expand presence in the world’s largest lighting market China. MLS, in turn, will benefit from LEDVANCE’s vast industry experience and strong international market presence.

“We are very pleased with this transaction, as MLS and LEDVANCE complement each other in an ideal way,” said LEDVANCE CEO Jes Munk Hansen. “Through MLS, we gain access to very cost-efficient and powerful LED components and will strengthen our market presence in Asia, especially in China. This supports our company’s strategy to expand its product portfolio, foremost in the areas of LED lamps, LED luminaires and smart lighting. We look forward to pursuing the many new opportunities that the partnership with MLS brings.”

MLS chairman Sun Qinghuan, said, “The wealth of experience and qualifications of LEDVANCE’s management team and employees provides a strong basis for collaboration. We will be working closely together in order to strengthen our position as leaders in the global lighting market.”

“What drives us as the majority owner within the investment consortium is to leverage our global investment expertise and resources to help Chinese companies and long-established companies from developed markets make the most out of their joint market potentials,” said Antony Yu, partner from IDG Capital. “It is great to be part of this exciting acquisition, as it brings together a leading Chinese LED manufacturer and a German lighting company with over 100 years of experience, strong brands, proven technology and international sales channels.”

As per an agreement with Osram, LEDVANCE will continue to use the Osram brand name and Sylvania name in the US and Canada. Osram expects license income of as much as €100 million over the coming years for the use of trademark rights.