German lighting company Osram has begun the process of selling the company’s general lighting lamps business.
Osram intends to separate the operation of the general lighting lamps business from the rest of the group by next April. Osram plans to legally separate its general lighting lamps business before August, according to a Reuters article that cited an Osram spokesman.
Osram’s lamps business reportedly has about 2 billion euros ($2.2 billion) in sales. Reuters noted that the business is in decline. However, it attracted interest from potential Chinese investors because of its well-known brand and strong distribution in the U.S. and Europe.
It is not certain if Osram intends to keep its LED fabrication facilities that recently opened in the U.S. It is also not clear who will purchase Osram’s general lighting lamps business. MLS, a Chinese maker of LED products, indicated that its board had approved a bid to purchase Osram’s lamps business, according to Reuters. In July, Shanghai Feilo Acoustics revealed that it had made a non-binding offer for Osram’s lamps business, the Reuters article reported.
Osram will likely reveal more in an investor conference Wednesday.
Osram’s move to sell its general lighting lamps business follows a similar plan of Netherlands-based Philips selling its Lumileds business, which produces LEDs and lamps for lighting and automotive applications.
GE, a major playor in the lighting business also plans on getting out of the lighting business directly. GE however, intends to spin off its lighting business into a subsidiary it controls called Current by GE that sells, solar, energy storage, gas fired technology, and LED lighting options. Current by GE will combine the lighting, networked sensors and data about energy usage and analysis to help users maximize the benefits of their lighting while minimizing energy usage.