Leatherman just bought a controlling interest in the company that produces LED Lenser flashlights. In buying Zweibrüder Optoelectronics GmbH & Co., Leatherman picks up a large, mature company with German design and Asian manufacturing capability that could affect the landscape of the handheld lighting market.

LED Lenser isn’t a well known name here in the States, but they have a diverse line of lights that runs from hardware-store value up to CandlePower Forums lumen-geeking levels. Mostly, you’ve seen them marketed under the name COAST at Lowes.

According to Leatherman, LED Lenser will not be rebranded and the company will run autonomously after Rakesh Sridharan, formerly Vice President of Operations at Leatherman, takes over as President of LED Lenser and takes a seat as a Managing Director of Zweibrüder Optoelectronics. There is also no plan to bring LED Lenser production into the USA.

The deal should go through in late February, though sources tell me that COAST will hold on to their previously inked distribution agreement through the spring of 2011. After that, look for the LED Lenser brand to appear here in the US.

What does this mean for Leatherman’s own Monarch line of lights? It makes sense for Leatherman to concentrate on it’s core tool business and let it’s Leatherman lights peter out as LED Lenser comes online.