Philips Electronics to buy lighting company Genlyte

Royal Philips Electronics, the world’s biggest maker of light bulbs, said Monday that it had agreed to buy lighting-fixtures manufacturer Genlyte Group Inc. for $2.7 billion.

Philips said it would pay $95.50 a share in cash. The bid is 52% more than Louisville, Ky.-based Genlyte’s closing price of $62.67 on Friday.

The deal would make Philips the biggest lighting company in North America. Chief Executive Gerard Kleisterlee is using proceeds from selling semiconductor holdings to bolster medical and lighting divisions and return cash to shareholders.

Genlyte will help the Amsterdam-based company boost sales of systems using high-power light-emitting diodes, or LEDs.

Philips stock fell 8 cents, or 0.3%, to 28.36 euros in Amsterdam. Genlyte rose $31.80, or 51%, to $94.47 in New York trading. Cree Inc., a maker of semiconductors that light dashboards and mobile phones, climbed $3.21, or 15%, to $24.29.

The deal will help Philips boost U.S. sales of energy-efficient lighting technologies such as LEDs to Genlyte’s client base of distributors and electrical wholesalers, said Theo van Deursen, head of Philips’ lighting unit.

Genlyte’s systems are used to illuminate office buildings, shops, streets, factories and gas stations.