Philips Domestic Appliances

History

2021: Hillhouse Capital bought Philips Domestic Appliances for 3.7 billion euros

At the end of March 2021, Philips announced the sale of its household appliances division (Philips Domestic Appliances) to Hillhouse Capital. The value of the transaction is estimated at 3.7 billion euros.

It is assumed that the transaction will be completed by the third quarter of 2021, as companies must receive the necessary permits from regulators. After paying taxes and transaction-related expenses, Philips expects to receive revenue in the amount of about $3 billion.

Hillhouse Capital acquired Philips Domestic Appliances for 3.7 billion euros

As Bloomberg notes, after the company exited the consumer electronics business, including TVs, DVD players and lighting devices, the sale of the household appliances business marks Philips' departure from non-healthcare markets. Chief Executive Officer Frans van Houten has made a number of acquisitions in the health sector to expand Philips' portfolio of telemedicine and diagnostic products and provide comprehensive services to hospitals and clinics seeking to optimize costs. The company intends to continue the strategy of transformation into a supplier of medical equipment.

This transaction completes our major sales. In the future, we will focus on strengthening our leadership in health technology, "said Philips CEO Frans van Houten.

Philips focused on the Hillhouse proposal, as it is convinced that an Asian-oriented investor will become a suitable home for the household appliances business, the head of the company added.

Philips will also enter into a license agreement for the use of the Philips brand and some of the company's other household appliances brands for the manufacture, sale and marketing of products worldwide for 15 years with the possibility of renewal.^[1]

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