LED Lighting Giant Cree To Spin Off Another Company
Durham-based Cree, known for its LED lighting, is spinning off another company.
Cree is calling the new business group the Cree Power and Radio Frequency Division.
Sharon Belenzon is an Associate Professor of Strategy at Duke’s Fuqua School of Business. Belenzon says he was not surprised by the news.
“So this legal separation in many, many cases creates huge value when you have divisions which have high growth opportunities and divisions which have low growth opportunities," said Belenzon.
Cree says the offering will help its management team focus on its LED and Lighting Businesses, while also creating a Power and RF business.
"If you have something good, this is the best way to prove to the world it's valuable," said Belenzon.
Last year, Dutch-based Phillips NV spun off its LED production and automotive lights operations to better compete with Cree, which has about 2,300 employees in the Triangle and 7,000 worldwide.
Cree filed a draft registration Monday with the US Securities and Exchange Commission for a potential initial public offering. There's no word on the type or number of shares of stock to be sold.