In a North American car lighting market, one player’s enterprise to money out was a sheet for another actor to join in.
Federal-Mogul Corp. put a interior lighting business adult for sale in 2012 after final a record was no longer partial of a core strategy. But notwithstanding a foe for lighting business and wiring marketplace share globally, a preference captivated no courtesy from intensity buyers and a operations hung baggy for 5 years.
Enter Rebo Lighting and Electronics — a Chinese association probably different in a United States, though with substantial approval in a home market. The retailer of interior LED lighting had $121 million in 2017 tellurian sales revenue, mostly in China, and had turn fervent to enter North America.
Its primogenitor company, Boao Industrial Co., purchased Federal-Mogul’s lighting section in Dec with a idea of regulating North America to build Rebo into a tellurian interior lighting powerhouse. For an undisclosed squeeze price, Boao, headquartered in Chongqing, China, acquired Federal-Mogul’s production plant in Sparta, Tenn., and a technical core in Ann Arbor, Mich.
Yu Zhang, North American boss of Rebo Lighting and Electronics, told Automotive News that investing in a U.S. participation was critical, even if a opinion wasn’t earnest for Federal-Mogul.
“The lighting business was noncore and tiny to Federal-Mogul, and they’ve wanted to sell for many years,” Zhang said. “But for Rebo, this is a categorical business. Even if we are smaller, this gives us a tellurian footprint.”
The lighting shred is saying other marketplace moves. At a finish of June, Magna International paid $271 million to acquire Olsa S.p.A., an Italian lighting maker. That understanding will give Magna new plants in Italy, Poland, Brazil, China and Mexico.