After approval by the British Competitors and
Market Authority (CMA) for the takeover of Ring Automotive by Osram, the partnership between the companies will now officially start on
01.05.2019. The acquisition of the British aftermarket specialist Ring will
allow the high-tech company Osram to expand its product range in the automotive
sector to include more automotive electronics and accessories. "In
addition to expanding our aftermarket portfolio, the acquisition of Ring will
enable us to tap into additional sales potential and further expand our market
expertise. The aim is to use the additional market and customer access and
create synergies in the product portfolio and distribution channels," says
Hans-Joachim Schwabe, CEO of Osram Automotive.
With
the acquisition of Ring Automotive, Osram is strengthening its aftermarket
business and offering customers access to a broader, complementary product
range. Both companies see the agreement as an opportunity for a successful
European cooperation. The common goal is to respond faster and better to new
trends and challenges in the constantly evolving automotive lighting industry
and to achieve further growth. Both Ring and Osram will benefit from each
other's strengths. Ring's experience and technical knowledge in automotive
lighting, accessories and electronics makes the company a successful
aftermarket brand throughout Europe. Osram will in turn give the Ring portfolio
access to the US market via Osram Sylvania's established channels and open up
new sales potential in Europe and the rest of the world with a differentiated
brand strategy.
Ring's
product portfolio extends far beyond classic automotive lighting, and the
company is particularly successful in the field of electronic car accessories.
The approximately 3000 products are available from over 3000 specialist dealers
in more than 60 countries. With 160 employees, the British company achieved an
annual turnover of £46.1 million in 2018. The
affiliation with Osram secures further investment for Ring, which support
future growth plans and product innovation in order to continue to grow,
especially in the aftermarket segment.
Synergies are also being created in sales: Ring gives the
high-tech company a UK and European platform to service its customers more
quickly and with greater flexibility, Osram in return offers a global marketing
system for the Ring product range. With the takeover, Osram will also gain
retail expertise for sales and distribution in Europe. Together with Ring
Automotive, Osram can expand the retail market beyond its existing portfolio of
classic automotive lighting to achieve growth. George Skalski, Managing
Director of Ring Automotive, sees the start of the cooperation as a milestone
in Ring's 45-year history:
"Being part of the Osram family offers us incredible opportunities for
further global expansion. The synergies are enormous and will help us to
continue our innovation leadership together. In the future, our customers will
benefit from the many years of experience of both companies.”
The
parties, including the seller Rubicon Partners, have agreed not to disclose the
financial details of the transaction.