Top ten M&A cases in the LED industry in 2016
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On December 12, Royal Philips announced that it has signed an equity transfer agreement to sell 80.1% of Lumileds to certain funds managed by Apollo's global management company subsidiary. Philips will retain the remaining 19.9% ​​of Lumileds. Equity. In 2016, the LED industry M&A drama continued to be staged. In addition to the integrated mergers and acquisitions of the upstream and downstream of the LED industry chain, it also extended its reach to education, media, Internet and other fields, including many major acquisition cases. This paper takes stock of the top 10 M&A cases in 2016 from the amount of M&A investment. 1. Apollo acquires Philips Lumileds for $2 billion On December 12, Royal Philips announced that it has signed an equity transfer agreement to sell 80.1% of Lumileds' shares to Apollo's global management company subsidiary. For certain funds, Philips will retain the remaining 19.9% ​​stake in Lumileds. In this transaction, Lumileds' corporate value is approximately $2 billion, including debt and debt type projects. Philips is expected to receive cash income, pre-tax and transaction-related costs of approximately $1.5 billion and participation in preferred stock. The transaction is expected to be completed in the first half of 2017, subject to customary closing conditions, including obtaining regulatory approvals. Comments: Since the exposure of Philips to the sale of Lumileds, the company has successfully signed an equity transfer agreement for nearly two years. First, the acquisition of the Jinsha River was blocked by the US Overseas Investment Committee. When Philips went to negotiate with potential buyers such as Blackstone Group, Onex, and Apollo, Philips' sales of Lumileds were full of twists and turns. The acquisition will be diversified for Apollo. For Lumileds, Apollo Private Equity Funds can continue to leverage the key values ​​of Lumileds in investing in multiple pipelines to find more possible opportunities for collaboration. 2. Panasonic's $880 million acquisition of Austrian automotive lighting giant ZKW Group On December 6, it was reported that Japan's Matsushita has decided to acquire the Austrian automotive lighting giant ZKW Group, the acquisition amount may reach 100 billion yen (about 880 million US dollars). The two parties are negotiating the details of the acquisition agreement and it is possible to reach a basic agreement in December. It is understood that this is not Panasonic has just begun to lay out the automotive field. Panasonic has already cooperated with the US electric car giant Tesla Motors in the field of electric vehicle batteries, with a total investment of 500 billion yen. Panasonic acquired German automotive software developer OpenSynergy in July this year. Last year, it also invested 49% of the Spanish auto parts manufacturer Ficosa Group to jointly develop electronic rearview mirror products. According to the data, the ZKW Group was established in 1938 and mainly supplies to European and American giants such as General Motors. The company has production and research bases in Europe, America, China and India. The number of employees worldwide is about 7,500. ZKW's main products are energy-saving, long-range and high-brightness automotive light-emitting diode (LED) headlights. The ZKW Group's global market share is expected to be around 5%. Comments: With the continuous development of autopilot technology and the reality, the lights have become more and more intelligent, and are becoming important parts to ensure the safety of automobiles. In the future, the car will develop towards the trend of energy-saving development. Panasonic will gradually adjust the direction of lighting products to cope with market changes. The acquisition of ZKW Group will accelerate the layout of the automotive lighting field. In addition, Panasonic can use its experience in sensors and other fields to help develop new and more recognizable lights and enhance their competitiveness in this field. 3. Dongshan Precision plans to acquire 4 million US listed companies MFLX On April 20, Dongshan Precision announced that the company merged its US Nasdaq-listed company MFLX in cash through its overseas subsidiaries. According to the Merger Agreement, MFLX's combined consideration for each share is $23.95, and the total transaction price is expected to be $610 million (approximately RMB 3.984 billion), while Dongshan Precision announced on July 27 that the transaction has been completed. MFLX is one of the world's largest suppliers of professional flexible circuit boards (FPCs) and flexible circuit assemblies (FPCAs). Its revenues are mainly from the mobile market, and its end products include smartphones, tablets and home electronics. If you successfully acquire MFLX, Dongshan Precision will become the first domestic FPC manufacturer in terms of market share and technical capability. The company's business layout has been further improved and its competitiveness has been greatly improved. Comments: Through this acquisition, Dongshan Precision can quickly establish the recognition of Chinese companies in overseas markets, open up overseas markets, expand the base of overseas high-end customer groups, and strengthen the company's international layout by leveraging the brand effect of MFLX. At the same time, Dongshan Precision will give full play to the synergy effect with MFLX, and complement each other in terms of market and channel, product and technology, production and operation management experience, and enhance the overall market competitiveness and brand influence of Dongshan Precision. 4, Mulinsen teamed up with IDG to throw 400 million euros to acquire Osram lighting business on July 26, led by strategic investor IDG Capital, the Chinese consortium composed of limited partners such as Mulinsen and Yiwu State-owned Capital Operation Center with more than 400 million euros The price of 439 million US dollars has successfully won the bid of Land Vance (LEDVANCE, OSRAM light source business). At this point, the Osram LEDVANCE merger and acquisition case, which lasted more than a year and attracted many domestic LED companies to participate in the bidding, officially ended. Comments: Mulinsen's acquisition of Osram lighting business will accelerate the scale of the LED industry chain. After the successful acquisition, Mulinsen will expand its overseas lighting business by virtue of the channel business and brand image of multinational giant Osram, and further extend the industrial chain to the downstream, and the terminal marketing market, especially the European and American markets, will be improved. Osram sells the general lighting business with low gross profit, adjusts the company's business structure, and will gather three strategic pillars of special lighting, lighting solutions and professional lighting in the future, and transform from low-margin products to high-profit products to enhance the company's competition. force. It can be seen that this sale is perfect for Mulinsen and Osram. 5, Qinshang Optoelectronics 2.9 billion acquisition of Eddie International Education on December 16, Qinshang Optoelectronics announced that its wholly-owned subsidiary Qinshang Industrial (Hong Kong) Co., Ltd. intends to acquire Eddie Education Group in cash, this time The initial valuation of the acquisition is an equivalent of US$2.9 billion. According to the initial planning of Qinshang Optoelectronics, the follow-up company or Hong Kong Diligence does not rule out the cooperation with related parties to establish the fund enterprise or subscribe for the fund enterprise share, or through other arrangements to implement the above acquisition. Prior to this, Qinshang Optoelectronics acquired Guangzhou Longwen Education and Little Red Riding Hood Education for 2 billion and 870 million respectively. According to public information, Aidi Education is a professional company engaged in international education investment in China. It provides one-stop kindergarten to 12th grade system international education. Eddie Education entered China in 1997 and can provide Chinese and foreign students with full English and bilingual. Kindergarten, elementary school, junior high school, Australian International High School (WACE), American International High School (ASE), British International High School (A-LEVEL) and International Foundation Year and English training courses. Comments: With the approval of the new version of the "Private Education Promotion Law" in China, our national education industry will usher in a period of rapid development. This merger will further promote the business layout and expansion of Qinshang Optoelectronics in the field of private education and improve the company's comprehensive competition. Force, lay a solid foundation for the company's integration and expansion in the field of education, and help the company to maintain stable and rapid development. 6. Huacan Optoelectronics plans to acquire MEMS assets of 1.65 billion. On October 14, Huacan Optoelectronics announced that it plans to issue 237 million shares for a price of 1.65 billion yuan to acquire 100% equity of Harmony Optoelectronics held by NSL and Harmony. At the same time, the company will non-publicly issue 28.777 million shares to Harmony Regent, the company's chairman Zhou Fuyun, and raise matching funds of no more than 200 million yuan. The issued shares of the shares purchased and the supporting shares were all at 6.95 yuan/share. Through this transaction, the company will be involved in the sensor field and strengthen its layout in the fields of consumer electronics and automotive electronics. According to the announcement, Harmony Optoelectronics itself has no actual business operations, and its main asset is 100% equity of MEMSIC, a target company held by its Hong Kong subsidiary. Based on June 30, 2016 as the benchmark date, the pre-assessment value of the underlying asset Harmony Optoelectronics was 1.66 billion yuan. After negotiation by the parties to the transaction, the amount of the transaction was 1.65 billion yuan. According to public information, MEMSIC is mainly engaged in the research and development, manufacturing and sales of micro-electro-mechanical systems (MEMS) products. Its main products are accelerometers and magnetic sensors. The products are widely used in many fields such as smart phones. Listed on NASDAQ in 2007, it is the world's first microelectronics technology (MEMS) listed company. Comments: Huacan Optoelectronics entered the field of MEMS sensors through the acquisition of MEMS, the company will use this layout of the consumer electronics market, industrial applications, etc., to further expand the IC industry-related business, to achieve diversified and extended development. 7. Yuanfang Optoelectronics plans to acquire 1.02 billion yuan on Weier Technology. On February 1, Yuanfang Optoelectronics announced the restructuring plan, and plans to acquire 100% equity of Weier Technology held by 18 counterparties such as Zou Jianjun and Hang Seng Electronics for 1.02 billion yuan, of which 7.14 is issued. 100 million yuan, cash payment of 306 million yuan. At the same time, Yuanfang Optoelectronics intends to raise no more than RMB 300 million in the issuance of shares to no more than 5 specific investors including the controlling shareholder and actual controller Pan Jiangen. Among them, Pan Jiangen promised that the subscription amount should be no less than 20%, mainly for construction. Biometric information security product production base and R&D center project to meet the future expansion of transportation, finance, military, public safety and other major businesses. Comments: Yuanfang Optoelectronics Co., Ltd. is a provider specializing in the R&D, production and sales of photoelectric detection equipment and providing comprehensive detection solutions. It belongs to the field of photoelectric detection in the inspection industry; and Weier Technology is an information security product based on biometric technology. A provider of intelligent information systems and services, belonging to the biometric industry. Through the acquisition of Weier Technology, Yuanfang Optoelectronics will share the R&D technology system with Weier Technology, which will help the company to create a professional detection and identification information product and service system, realize the complementary advantages of both parties, play a synergistic effect and enhance the overall value of the company. 8. Honglizhihui plans to acquire 900 million yuan for the company. On December 16, Hongli Zhihui announced that the company plans to acquire 100% equity of the company, and the target equity transaction price is 900 million yuan. The company pays the consideration to the counterparty to issue shares and pay cash. The stock issuance price is 12.70 yuan/share, and the cash payment is 360 million yuan. At the same time, the listed company plans to raise funds of no more than 382 million yuan to pay the cash consideration for the transaction, and to pay the intermediary fees for the transaction. According to the announcement, Suyi Network is an excellent mobile digital marketing solution provider in the industry. It is committed to providing digital marketing services including auto insurance, life insurance, loans and other products to customers such as insurance companies through the Internet. The national traffic violation inquiry vehicle 100 test driver license and other APP provides the majority of car owners with after-sales services including traffic violation inquiries and auto insurance product marketing. Comments: Through the acquisition of the company, the main business of Hongli Zhihui will increase the Internet marketing and automotive Internet service business based on the R&D, production and sales of original LED devices and their application products. The company's business will be further diversified to form the business structure of LED+ car networking. 9. Liard plans to acquire 844 million yuan to acquire the US optical giant Optitrack parent company Liard. On November 4th, it announced that it will acquire US NATURALPOINT, INC. through its subsidiary, Pingda Company, for US$125 million (approximately RMB 844 million). (NP company) 100% equity. NP will become a wholly-owned subsidiary of Pingda. At the same time, Pingda will purchase the target company's current business premises for $3 million (approximately RMB 20.27 million), a real estate located in Corvallis, Benton County, Oregon. Comments: NP has the world's leading 3D optical motion capture technology, and its optical positioning products are in the leading position in VR/AR. The acquisition of NP by Liard will speed up the layout of the VR field and realize the diversified development of the company's business. 10. Lehman's proposed price of 780 million acquisition of China Unicom's new cultural company Lehman shares announced on April 11 that the company intends to purchase Huashi Media and HD Investment Co., Ltd. through the combination of issuing shares and paying cash. Depending on the 100% equity of the New Culture Company. The estimated value of the 100% equity of Huashi New Culture, the underlying asset of the transaction, was 780,824,200 yuan. The transaction price was determined to be RMB 780 million. After the completion of the reorganization, listed companies can use the LED advertising media resources in the existing sports industry and the cooperation of subway TV media resources in sales channels, management experience and technical talents to further promote the implementation of the listed company's main business strategy. At the same time, relying on the subway TV media, the sports media resources will be effectively extended to achieve an overall effective improvement of the economic benefits of sports and metro media business. Comments: The acquisition of Huashi New Culture is another major capital operation of Lehman's shares following the previous series of sports layouts. It provides synergy for the development of the company's sports industry and closely matches the strategic layout of Lehman's development of sports industry. Rapidly improving the income and profit level of the company's sports media business has far-reaching strategic significance for its future development.