Cree LED Sale to SMART Global Holdings to Close in Late February, Early March

Below is a comment from Mark Adams, President & CEO on the Smart Global Holdings quarterly conference call:

“Now I’d like to provide a brief update on our pending acquisition of Cree LED. We remain very excited about Cree LED joining the SMART family. Cree LED’s leadership position in the specialty LED segment aligns well with our overall specialty solutions strategy emphasizing growth, margin enhancement, and diversification. I continue to be impressed with their leadership team, culture, and overall operating discipline as we collectively work on a successful integration plan for Cree LED as part of SGH. We have received positive signs on the regulatory front and the teams are working hard on integration milestones, which we feel will result in a potential close in a late February, early March time frame.”

Later in response to a question from Brian Chin at Stifel, Adams stated, “But I think your question is a good one and I’m not shying away from it… I just I want to get more clarity on what’s underneath the hood at Cree LED on specific product lines and see if there’s either a need to reinvest in those businesses and scale them more beyond where they are because you got to remember, they’ve been pretty limited at some level in their ability to grow given the fixed wafer capacity out of North Carolina.”

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