September 6, 2024
SGM Light Acquired by Chinese Lighting Company
Image credit: SGM Light
Assets of Danish company in bankruptcy proceedings acquired for $3.24 million
SGM Light, a Denmark-based manufacturer of entertainment and architectural lighting solutions, has been acquired by Chinese lighting company Golden Sea. The acquisition was finalized on September 1, 2024. Golden Sea, formally known as Guangzhou Haoyang Electronic Co., Ltd., is listed on the Shenzhen Stock Exchange under the ticker symbol 300833.SZ. This acquisition will see SGM continue its operations in Denmark, where its products are developed and manufactured.
Founded in 1975, SGM has developed lighting technologies for both entertainment and architectural applications. The company makes an array of lighting products including IP65-rated LED moving heads and façade illumination solutions. Some notable projects using SGM products include the Three Sister Bridges in Pittsburgh, Pennsylvania, Louis Vuitton’s headquarters in Paris, and large-scale performances by Adele in Munich and Metallica during their European tours. Different tours, most likely.
Acquisition Details and Operational Continuity
Golden Sea acquired the operational assets of SGM Light A/S on August 31, 2024, through an agreement with a trustee appointed by Denmark’s Aarhus Bankruptcy Court. The €3 million purchase ($3.24 million USD), paid in cash, includes SGM’s brand, trademarks, patents, customer information, IT equipment, inventory, and production assets. Golden Sea assumes SGM’s employees but not its debts.
SGM works with a range of traditional commercial lighting agents in North America, including Pacific Lighting Systems (PLS) in Seattle, Architectural Lighting Alliance (ALA) in Dallas, and RC Lurie in Arizona. Additionally, SGM partners with agents that are known to specialize in entertainment lighting and controls, such as Boston Illumination Group in New England, AKT3 in Washington, D.C., and Wunder Lighting & Controls in Northern California.
Golden Sea, which manufactures professional stage lighting, cultural tourism lighting, and stage truss products, also owns several other brands, including Terbly, GSARC, French lighting brand Ayrton, and the truss brand WTC. With the acquisition of SGM, Golden Sea plans to integrate SGM’s product offerings with its own, particularly in the architectural and entertainment lighting sectors.
SGM will continue to operate under its existing name, and Golden Sea has confirmed that the company’s staff in Denmark will remain in place. “We strongly value the whole SGM team and are excited to have them on board as we seek to invest and grow in our determination to make SGM sustainably successful,” said Christopher Agius Ferrante, Vice President of Golden Sea.
Impact on Orders and Customer Relations
Due to the change in legal ownership, SGM will be contacting customers with existing orders to discuss any potential changes in lead times and other relevant details. The company has indicated that all customers will need to place new orders to replace those made before the acquisition, as previous orders cannot be transferred to the new legal entity. SGM has assured customers that all warranties under the former entity will continue to be honored.
In the coming days, SGM is expected to resume taking new orders for its full product range.
