ams OSRAM sells entertainment and industrial lighting business

In late April of this year, ams OSRAM announced a debt optimization plan along with its first-quarter results, aiming to reduce the ratio of net debt to adjusted EBITDA to below 2.

Its plan includes: continuing to implement the “Re-establish the Base” (RtB) strategy to drive growth in the core semiconductor business and improve free cash flow performance; selling the 8-inch wafer fab in Malaysia to eliminate related sale-leaseback (SLB) liabilities; extending the revolving credit facility (RCF); and assessing the disposal of multiple assets to realize asset realization gains of more than 500 million euros.

Recently, ams OSRAM implemented the first asset sale in its accelerated debt optimization plan.

On July 29, ams OSRAM announced that it would sell its Entertainment & Industry Lamps (ENI) business to Japanese optical technology company Ushio for 114 million euros (approximately 900 million yuan).

The transaction is expected to close in the first quarter of 2026, with approximately 500 employees transferring to Ushio along with the business. ams OSRAM aims to realize over €500 million in asset disposal gains through a series of initiatives, including this transaction.

ams OSRAM stated that following the successful extension of its credit line and issuance of senior notes, the company continues its debt optimization strategy through its first asset sale. Ushio is an ideal home for the company's niche high-end specialty lighting business, allowing it to further focus on its core market and streamline its product portfolio.

According to reports, the ENI business sold by ams OSRAM covers specialty lighting fixtures for infrastructure and cinema applications, as well as high-end light sources for semiconductor wafer manufacturing equipment. This business generated approximately €170 million in revenue in 2024.

The acquiring company, Ushio, was founded in 1964 and is headquartered in Japan. The company mainly manufactures and sells light sources such as lamps, lasers, and LEDs in the ultraviolet, visible, and infrared light bands, as well as optical and imaging equipment equipped with the above devices. Ushio has a high market share in both industrial process fields (including semiconductor, flat panel display, and electronic component manufacturing) and visual imaging fields (such as digital projection and lighting).

It is worth noting that since the merger in March 2021, ams OSRAM has sold several LED lighting-related businesses:

In 2021-2022, ams OSRAM successively sold its LED driver power supply, smart lighting, plant lighting, automotive lighting, and architectural lighting application businesses. The aim was to focus on the development of core technology areas such as light sources, visualization, and sensing, and to divest non-strategic core businesses.

The purpose of ams OSRAM’s sale of its ENI business is to accelerate the implementation of its debt optimization plan. In the future, ams OSRAM may continue to sell off non-core semiconductor and optical assets.

Against the backdrop of its "Re-establish the Base" (RtB) strategy and plans to accelerate debt optimization, ams OSRAM continues to improve. Recently, ams OSRAM announced its preliminary results for the second quarter of 2025.

During the reporting period, ams OSRAM's revenue reached €775 million (approximately RMB 6.12 billion), a slight decrease compared to the previous quarter. However, its adjusted EBITDA was €145 million, with an adjusted EBITDA margin of 18.8%, both showing sequential growth; free cash flow was -€14 million, an improvement compared to the first quarter.

Looking ahead to the third quarter, ams OSRAM expects revenue to be between €790 million and €890 million; with the continued implementation of the “Rebuilding the Foundation” strategy, it expects the adjusted EBITDA margin to improve to 19.5% (±1.5%).

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