Philips Lighting has announced the acquisition of Shenzhen LiteMagic Technologies, a Chinese manufacturer and seller of lighting luminaires and control systems for urban and façade lighting.
With this acquisition, Philips Lighting will expand its high-end portfolio of façade lighting with a complementary portfolio of luminaires and control systems to capture growth in the mid segment of the urban market. It also helps the company to better capitalize on the large and fast-growing market for urban lighting in China.
Founded in 2004, LiteMagic Technologies is located in Shenzhen and generated annual sales of approximately EUR 32 million in 2017. Its broad and cost-competitive product portfolio is complementary to that of Philips Lighting. LiteMagic Technologies is able to swiftly implement city-wide lighting projects and customize products to meet its customers’ needs. The company will continue to operate in China under the LiteMagic brand name.
Philips Lighting has been in China since 1920. Currently the company serves professional and consumer markets through its 36 sales offices, more than 300 branded retail stores and 10,000 outlets. Philips Lighting's second largest research and development center is located in China while it also operates five manufacturing sites in the country.
The transaction, upon filing with Chinese regulatory authorities, is expected to close in the third quarter of 2018 and to be accretive in 2019. Financial details were not disclosed.