Cree Announces Termination of Wolfspeed and Infineon Sale Transaction
February 16 2017 - 4:30PM
Business Wire
Wolfspeed to be reintegrated into Cree
Cree, Inc. (Nasdaq: CREE), a market leader in LED lighting,
today announced that it will terminate the definitive agreement to
sell its Wolfspeed Power and RF division (“Wolfspeed”), which
includes the silicon carbide substrate business for power, RF and
gemstone applications, to Infineon Technologies AG (FSE: IFX /
OTCQX: IFNNY). Cree and Infineon have been unable to identify
alternatives which would address the national security concerns of
the Committee on Foreign Investment in the United States (CFIUS),
and as a result, the proposed transaction will be terminated.
“We are disappointed that the Wolfspeed sale to Infineon could
not be completed,” stated Chuck Swoboda, Cree chairman and CEO. “In
light of this development, we are going to shift our focus back to
growing the Wolfspeed business. The Wolfspeed business has
performed well this year as our customers have further realized the
value of our unique technology and is on a great path as a part of
Cree. The strength of our balance sheet and improving operating
cash flow gives us the ability to invest in Wolfspeed, while
continuing to pursue our LED and Lighting growth plans. We believe
investing to grow all three businesses will create the most value
for our shareholders.”
Chuck Swoboda added: “I thank Dr. Ploss and the rest of the
Infineon team for the significant amount of time and commitment
they invested trying to successfully complete the transaction.”
The termination of this transaction with Infineon will trigger a
termination fee of $12.5 million being paid to Cree. As a result of
the transaction termination and Cree’s decision to focus on running
the Wolfspeed business, Wolfspeed will now be reported as a
separate segment of Cree’s continuing operations.
The Company will provide a complete review of its fiscal 2017
third quarter results and fourth quarter outlook on its regularly
scheduled financial results call on April 25th at 5:00 p.m. Eastern
time.
About Cree, Inc.
Cree is a market-leading innovator of lighting-class LEDs,
lighting products and semiconductor products for power and radio
frequency (RF) applications. Cree believes in better light
experiences and is delivering new innovative LED technology that
transforms the way people experience light through high-quality
interior and exterior LED lighting solutions.
Cree’s product families include LED lighting systems and bulbs,
blue and green LED chips, high-brightness LEDs, lighting-class
power LEDs, power-switching devices and RF devices. Cree’s products
are driving improvements in applications such as general
illumination, electronic signs and signals, power supplies and
inverters.
For additional product and Company information, please refer to
www.cree.com.
Forward Looking Statements:
This press release contains forward-looking statements involving
risks and uncertainties, both known and unknown, that may cause
actual results to differ materially from those indicated in the
forward-looking statements. Forward-looking statements by their
nature address matters that are, to different degrees, uncertain,
such as statements about future operating results of the Wolfspeed
business as a part of Cree and its long term prospects. Actual
results could differ materially due to a number of factors,
including potential business uncertainty, such as changes to
existing business, customer or supplier relationships that could be
impacted by the Infineon transaction not being consummated that
could affect Cree's or Wolfspeed’s financial performance; risks of
adverse impact on operations or financial performance in connection
with Wolfspeed because the proposed sale to Infineon transaction
will not close; ongoing uncertainty in global economic conditions;
risks associated with acquisitions, divestitures or investments
generally; the rapid development of new technology and competing
products that may impair demand or render our products obsolete;
and other factors discussed in our filings with the Securities
and Exchange Commission (SEC), including our report on Form
10-K for the fiscal year ended June 26, 2016, and
subsequent reports filed with the SEC. These forward-looking
statements represent Cree's judgment as of the date of this
release. Except as required under the U.S. federal securities laws
and the rules and regulations of the SEC, Cree disclaims any intent
or obligation to update any forward-looking statements after the
date of this release, whether as a result of new information,
future events, developments, changes in assumptions or
otherwise.
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version on businesswire.com: http://www.businesswire.com/news/home/20170216006310/en/
Cree, Inc.Raiford Garrabrant, 919-407-7895Director, Investor
Relationsinvestorrelations@cree.comFax: 919-407-5615
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