Trade Resources Industry Views Osram Acquiring Automotive LED Module Maker Novita

Osram Acquiring Automotive LED Module Maker Novita

Tags: Osram, LED Module

As part of its three-pillar strategy announced last November, Osram GmbH of Munich, Germany is further expanding the leading position of its Specialty Lighting (SP) business by agreeing to acquire Novità Technologies of Hendersonville, TN, USA, a manufacturer of automotive LED modules that are used particularly in tail lights, fog lights and daytime running lights.

With about 100 staff, Novità ships mainly to headlight and tail-light manufacturers in the USA, and has annual sales of over €40m. The transaction is planned to be completed by October, and should immediately be margin-accretive in Osram's Specialty Lighting segment.

"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 US market," believes 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, notes Osram. As a result, there is increasing demand for complete systems and modules rather than for the pure light sources. An example is the Ford F-150 pick-up truck, 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, Osram is complementing its LED module business with regard to the tail light and forward auxiliary lighting such as fog lights and daytime running lights (DRLs).

The global market for LED modules for front and rear lights is forecast to increase by an average of 20% per year by 2020. It is reckoned that Novità is well positioned in this sector, particularly in the USA, and therefore adds to Osram in terms of both the regional market and the LED automotive portfolio for project and system business. Founded in 2007 as an asset management buyout, Novità has recorded rapid growth in the last three years and is said to have a high level of engineering and manufacturing expertise, specifically in the LED module business.

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