From MLS to Leyard: LED Industry M&A Drama Continues to Thrill
The application of new concepts such as "Internet+" is accelerating the transformation of the entire lighting industry landscape—vertical and horizontal integration, survival of the largest, using capital leverage to position at the high end of the industry. What exactly is the LED acquisition investment group leader planning?
450 million to boost lighting! Leyard buys three more engineering companies—once again!
After the signing of the OSRAM acquisition agreement, because the acquisition target has a relatively large number of branches worldwide, the team composed of MLS and investors such as IDG has recently been traveling across nearly 50 countries to complete government approval procedures in each country. Although nearly a month has passed, many LED entrepreneurs are still talking enthusiastically about this acquisition. Lin Jiliang publicly admitted that this year, relying on its own growth, MLS's output value could reach 5 billion yuan. In the future, with OSRAM as an "outlet to the sea," MLS has the opportunity to achieve an even larger scale.
Leyard released the "Resolution Announcement of the 36th Meeting of the Second Board of Directors" on the evening of the 26th. The announcement showed that the company plans to acquire 100% equity of Shanghai Lanshuo Digital Technology Co., Ltd. for 150 million yuan in cash, plans to acquire 100% equity of Sichuan Purui Lighting Engineering Co., Ltd. for 120 million yuan in cash, and plans to acquire 100% equity of Xi'an Vanke Times System Integration Engineering Co., Ltd. for 180 million yuan in cash.
For the lighting industry, in addition to the experience and skills of acquisitions, what they may be more concerned about is what M&A integration can bring to the LED industry. Can LED companies seize the opportunity of the slow recovery of the international economy, use capital leverage to deploy at the high end of the industry, and stage a brilliant acquisition drama?
From MLS to Leyard, the wonderful M&A drama of the LED industry continues
The current situation of small and medium-sized enterprises conquering the world has become inappropriate in the increasingly fierce industrial competition. In an industrial cluster, leading enterprises have strong radiating and driving effects. They are not only the main organizations for achieving innovative development, but also undertake the development and transmission functions of cluster technological progress. For MLS, which is committed to challenging Philips and breaking into the world's top three, acquiring suitable companies is undoubtedly a powerful weapon. The big acquisitions of LED leaders such as Leyard will also stimulate more powerful enterprises to become stronger and bigger through mergers and reorganizations, using the industry reshuffle period to accelerate their layout.
The following are the three companies Leyard acquired for 450 million
1. Shanghai Lanshuo Digital Technology Co., Ltd.
Shanghai Lanshuo Digital Technology Co., Ltd. was established in September 2005 with a registered capital of 32.2 million yuan. Its main business scope includes technology development, technology transfer, technology consulting, and technical services in the technical fields of digital optoelectronic components and products, electronic products, computer software and hardware, communication equipment, and instrumentation (excluding measuring instruments); the production and sales of electronic components (LED displays); the sales of computers, software and auxiliary equipment (excluding specialized products for computer information system security), and electronic products; the leasing of self-owned equipment (financial leasing not permitted); electric power construction engineering; professional construction of building intelligent engineering; professional construction of urban and road engineering; security and protection engineering; and engagement in the import and export business of goods and technology.
Shanghai Lanshuo commits that the deducted non-recurring net profits for 2016, 2017, and 2018 shall be 15 million yuan, 19.5 million yuan, and 25.35 million yuan, respectively.
Main financial data of Lanshuo Technology for the most recent year and the most recent period
2. Sichuan Purui Lighting Engineering Co., Ltd.
Sichuan Purui Lighting Engineering Co., Ltd. was established in May 2004 with a registered capital of RMB 10.5 million. Its main business scope includes urban and road lighting engineering, building intelligence engineering, electromechanical equipment installation engineering, and engineering design.
Sichuan Purui commits that the non-recurring net profit for 2016, 2017, and 2018 will be RMB 12 million, RMB 15 million, and RMB 18.75 million, respectively.
Main financial data of Purui Lighting for the most recent year and the most recent period
3. Xi'an Vanke Times System Integration Engineering Co., Ltd.
Xi'an Vanke Times System Integration Engineering Co., Ltd. was established in December 2000 with a registered capital of RMB 30.6 million. Its business scope includes the design of building intelligent management systems, building automation, industrial automation, security systems, structured cabling, parking lot management, electronic information systems, urban and road lighting, and strong (weak) current system integration, as well as the sales of related products; engineering construction, equipment installation, and technical services; sales of safety and fire-fighting equipment; design, construction, and related technical services for electromechanical equipment (excluding automobiles) installation engineering, environmental protection engineering, construction engineering, and interior and exterior decoration engineering; import and export of goods and technology, etc.
Xi'an Vanke promises that the net profit excluding non-recurring gains and losses for 2016, 2017, and 2018 will be RMB 18 million, RMB 22.5 million, and RMB 28.125 million respectively.
