Penguin Solutions to Sell Cree LED Business to Transom Capital Group

Penguin Solutions, Inc. has entered into a definitive agreement to sell its Cree LED business, which constitutes its Optimized LED segment, to an affiliate of Transom Capital Group. The divestiture is an all-cash transaction intended to sharpen Penguin's focus on its data center AI infrastructure and memory solutions business.

Key Details

• Transaction: Sale of the Cree LED business to Transom Crystal AcquireCo, LLC, an affiliate of Transom Capital Group.
• Terms: The deal is structured as an all-cash transaction. Specific financial terms were not disclosed.
• Timeline: The agreement was signed on November 3, 2026, and the transaction is expected to close in the first calendar quarter of 2027.
• Financial Impact: Penguin Solutions reaffirmed its fiscal 2027 outlook, noting that the Cree LED business represents approximately 10% of projected fiscal 2027 net sales. The company will update its outlook after the sale closes.
• Management Change: Joseph Clark, President of Optimized LED, will cease to be an executive officer of Penguin Solutions upon the closing of the transaction.