Osram expands its expertise in automotive LED modules

Acquisition of Novità Technologies a further step in implementing three-pillar strategy

As part of the three-pillar strategy announced last November, Osram is further expanding the leading position of its Specialty Lighting (SP) business. The company has agreed to acquire Novità Technologies, a U.S. manufacturer of automotive LED modules which are used particularly in tail lights, fog lights and daytime running lights. The acquisition will immediately be margin-accretive in the Specialty Lighting segment. Novità Technologies, a successful company based in Hendersonville, Tennessee, has annual sales of over 40 million euros, with around 100 employees and ships mainly to headlight and tail light manufacturers in the United States. Both parties have agreed not to divulge any financial details of the transaction, which is planned to be completed by October 2016. “The purchase of Novità Technologies is an outstanding addition to our project and system business and at the same time strengthens our position on the important U.S. market”, said Hans-Joachim Schwabe, CEO of Osram’s Specialty Lighting business unit.

As technological changes continue to take place around LEDs the requirements of manufacturers in the automotive industry are also changing with regard to the design and functionality of light. As a result, there is increasing demand for complete systems and modules rather than for the pure light sources. A successful example is the Ford F-150, for which Osram has developed a complete LED-based front lighting system comprising low and high beam, turn indicators, parking light and control module. By purchasing Novità Technologies, Osram is complementing its successful LED module business with regard to the tail light and forward auxiliary lighting such as fog lights and daytime running light.

The global market for LED modules for front and rear lights is forecast to increase by an average of 20 percent per year by 2020. Novità Technologies is very well positioned in this sector, particularly in the USA, and is therefore an excellent addition to Osram in terms of both the regional market and the LED automotive portfolio for project and system business. The company, which was founded in 2007 as an asset management buyout, has recorded rapid and successful growth in the last three years and has a high level of engineering and manufacturing know-how specifically in the LED module business.