Dialight plc, a global leader in LED lighting for heavy industrial applications, has announced the sale of its North American traffic signal business to Leotek Electronics USA LLC. The transaction, which encompasses signal lights used in traffic, pedestrian, and railroad management, will yield gross cash proceeds of $5.8 million. After accounting for transaction and other costs, the net cash proceeds amount to $5.5 million. These funds will be utilized to reduce the group’s indebtedness.
The traffic signal business was previously identified as non-core to Dialight’s strategic operations. The assets sold were valued at $nil, with no profits attributable to this business in the twelve-month period ending December 31, 2023.
Following the transaction, Dialight will continue to manufacture products under license for Leotek Electronics for up to 15 months from the completion date. This arrangement ensures a smooth transition while allowing Dialight to concentrate its management and production efforts on its core LED lighting activities.
This strategic divestment aligns with Dialight’s focus on optimizing its business operations and strengthening its position in the heavy industrial LED lighting market.
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