Ams Osram divests of non-essential lighting unit
Plastic Omnium, a global vehicle technology manufacturer, has reached an agreement to buy Automotive Lighting Systems Limited GmbH (AMLS) from ams Osram for $75 million. Plans of which specific product categories to be passed onto the Paris-based company's exterior body division have been kept secret. Amy Flécher, vice president of corporate communications for ams Osram, said the company intends to make an announcement later. But Flécher clarified that the transaction reinforces the company's vision to allocate its resources to strategic core technologies and divest in businesses that "are not seen as core to the corporate strategy."
As part of the deal, ams Osram will remain a primary LED and optical components vendor to Plastic Omnium. Headquartered in Munich, Germany, AMLS sells directly to the automotive OEM market. It produces an array of combined lighting technologies for automotive exterior and interior lighting systems as well as sensing modules, which are manufactured in multiple locations across the United States, China, and Italy.
Pending regulatory approval, the cash transaction for AMLS is set to finalize in the third quarter of 2022. AMLS, an independent division within ams OSRAM's automotive business, voiced optimism to keep its collaborative relationship going with Plastic Omnium, whose aim is to further develop OEM customer demand for smart body car parts. It operates a global network of 137 plants and 31 research centers.
Several elements about the size and breadth of the "smart bumper and tailgate" plans envisioned by Plastic Omnium remain currently under wraps. It is unclear whether Plastic Omnium will enter the global aftermarket or focus on becoming a tier-one supplier. The company promises to reveal the particulars and perspectives of its growth strategy at the Capital Markets Day conference scheduled for May 12 in Paris.
Stated in a joint press release shortly after both parties announced the purchase agreement on March 25, Dirk Linzmeier, managing director of AMLS, sees the compatibility with Plastic Omnium as a step forward. "Our portfolios are highly complementary together,” he said. “We expect to expand our market access and we share a similar mission and mindset. We look forward to joining Plastic Omnium to establish a strong mobility lighting player built on AMLS' portfolio of innovative technologies."
Laurent Favre, CEO of Plastic Omnium, believes that AMLS' automotive expertise will enhance the company's "smart bumper and tailgate strategy" with its available software platforms. He added in the press release, "The acquisition of AMLS is a unique opportunity to take an important step into the growing innovative lighting systems segment."
Ams Osram also sells automotive bulbs, car cameras, and off-road lighting in the United States aftermarket. The press statement read that it will continue "covering the entire light spectrum - from visible to invisible light - and sensing applications for the automotive industry. This includes key automotive technology to support optical applications such as driver and interior monitoring, dynamic and static exterior lighting, RGB interior lighting, LiDAR for autonomous driving and advanced driver-assistance systems (ADAS), head-up display, gesture sensing, to name but a few areas of innovation."
Asked what the deal could mean for its United States automotive aftermarket facilities where it produces headlight bulbs, the impacts are minimal, Flécher said. Regarding ams Osram's decision to divest AMLS, Flecher told AMBW that "Hillsboro (New Hampshire) does not have any AMLS activities and is not included in this activity." For the fate of the New Hampshire plant that is known for making the Sylvania brand of headlamp bulbs, Flecher said, “There is no change and no impact for Sylvania with this transaction."
Senior managers who work at the Osram Sylvania New Hampshire factory did not respond to questions regarding the impacts of the selloff of AMLS.
According to the Osram Sylvania website, its largest merchant resellers are Amazon, AutoZone, Advance Auto Parts, O'Reilly Auto Parts and Walmart.
As of 2021, Plastic Omnium declared sales revenue of €8 billion, or $8.79 billion. Next to investing in hydrogen since 2015, it has developed a comprehensive range of hydrogen storage vessels, fuel cells and systems.
Following the dismantling of the OSRAM Continental joint venture, ams OSRAM Automotive Lighting Systems GmbH recast its identity in October 2021 and began reorganizing its product portfolio, suggesting companies like Plastic Omnium would make a better fit for the German company's non-core lighting lines.
