In the past 12 months, Philips has further strengthened its portfolio with the launch of new products and solutions, as well as the acquisitions of Intact Vascular in image guided therapy, and BioTelemetry and Capsule Technologies in connected care. “I am confident that the Domestic Appliances business will be able to expand on its market leadership with the support of Hillhouse Investment. “I am pleased that in line with our plans we have completed this transaction and concluded our major divestments,” said Frans van Houten, CEO of Royal Philips.
Philips license#
The total deal value amounts to approximately EUR 4.4 billion resulting from an additional 15-year brand license agreement with annual payments that represent an estimated net present value of approximately EUR 0.7 billion. The transaction values Domestic Appliances, a global leader with EUR 2.2 billion sales in 2020 in kitchen, coffee, garment care and home care appliances, at an enterprise value of approximately EUR 3.7 billion. Philips received cash proceeds after tax and transaction-related costs of approximately EUR 3 billion. The results of this transaction, which Philips announced on March 25, 2021, will be reported under discontinued operations in the third quarter of 2021.
Amsterdam, the Netherlands – Royal Philips (NYSE: PHG AEX: PHIA), a global leader in health technology, today announced that it has completed the sale of the Domestic Appliances business to Hillhouse Investment, a global investment firm.