Philips to promote its dwelling home equipment enterprise to World


March 25, 2021

  • Transaction worth of dwelling home equipment at an enterprise worth of roughly EUR 3.7 billion
  • Philips expects money revenue after tax and transaction-related prices of roughly €3 billion within the third quarter
  • A further 15-year model license settlement with annual funds that represents an estimated internet current worth of roughly EUR 0.7 billion, leading to a complete deal worth of roughly EUR 4.4 billion.
  • The transaction is anticipated to be accomplished within the third quarter of 2021, topic to customary closing circumstances.
  • House home equipment will probably be offered as discontinued operations in Philips’ monetary statements within the first quarter of 2021

Amsterdam, Netherlands – Royal Philips (NYSE: PHG; AEX: PHIA), a worldwide chief in well being expertise, at this time introduced that it has signed an settlement to promote its dwelling equipment enterprise, which is able to develop kitchen, espresso, attire care and Is a worldwide chief with billions of Euro gross sales. for dwelling care home equipment, Hillhouse Capital, a worldwide funding agency centered on serving to firms obtain long-term sustainable progress by way of digital innovation and enablement. The transaction is anticipated to be accomplished within the third quarter of 2021, topic to customary closing circumstances, together with related regulatory approvals.

The transaction values ​​the house home equipment enterprise at an enterprise worth of roughly €3.7 billion. Upon completion of the transaction, Philips expects to obtain money proceeds after tax and transaction-related prices of roughly €3 billion. Moreover, Philips and Home Home equipment entered into an unique model license settlement to make use of the Philips model and sure different Philips dwelling equipment manufacturers to fabricate, promote and market dwelling equipment merchandise globally for a interval of 15 years. Will enter, which is renewable. Topic to the phrases of the Model License Settlement. Annual funds throughout this era signify an estimated internet current worth of roughly EUR 0.7 billion, leading to a complete deal worth of roughly EUR 4.4 billion. Following at this time’s settlement, the house equipment enterprise will probably be offered in Philips’ monetary statements as a discontinued operation within the first quarter of 2021.

“I’m delighted that at Hillhouse Capital we now have discovered a brand new dwelling for the house home equipment enterprise that may develop on its market management, robust model and pipeline of latest improvements,” mentioned Frans van Houten, CEO of Royal Philips. “This transaction concludes our main disinvestment. Going ahead, we’re centered on increasing our management in well being expertise and persevering with our transformation right into a options firm supporting skilled healthcare purchasers who obtain quadruple goal and customers with their private well being. Huh. ,

Philips is a number one supplier of built-in options to enhance individuals’s well being and well-being and optimize care supplier productiveness throughout the well being continuum from wholesome dwelling and prevention to analysis, therapy and residential care. Philips’ 3.2 billion euro private well being enterprise performs a key function within the firm’s built-in well being sustainability method by way of consumer-driven product and resolution innovation in areas reminiscent of oral healthcare, private care and mom and youngster care.

Hillhouse Capital
Hillhouse Capital invests globally with the goal of working with entrepreneurs and administration groups to construct top quality companies that obtain sustainable long-term progress. Hillhouse has deep expertise in integrating expertise and data-driven structure to drive digital innovation and enterprise growth. The agency has efficiently labored with a number of world shopper and retail companies to deepen shopper engagement and introduce modern direct-to-consumer fashions, creating new buyer segments and markets.

“We sit up for becoming a member of Philips to develop into new markets and seize extra progress alternatives globally,” mentioned Lei Zhang, founder and CEO of Hillhouse Capital. “We’re aligned with Philips’ mission to carry top quality merchandise to help wholesome and fulfilling life for customers around the globe.”

dwelling home equipment
The house equipment enterprise, which will probably be headquartered within the Netherlands, is lively in over 100 international locations, and has a worldwide innovation, manufacturing and industrial footprint. Its profitable merchandise embody the Airfryer, Absolutely Automated Espresso Machine with Letego, Good Care Elite Steam Generator, Air Air purifier and SpeedPro Max Vacuum Cleaner. The enterprise employs roughly 7,000 workers globally.

“I’m assured that with Hillhouse Capital’s deep e-commerce, provide chain and digital experience, we will probably be nicely positioned to carry significant innovation to customers’ properties,” mentioned Henk de Jong, CEO of Philips Home Home equipment. “Primarily based on our market-leading product portfolio, intensive buyer and shopper base, and R&D capabilities, we’re eager to help households and people to guide more healthy and happier lives. We sit up for making the most of extra progress alternatives.” Trying ahead to working with Hillhouse.”

For additional data please contact:

Ben Xaviers
Philips World Press Workplace
Tel: +31 6 15213446
E-mail: ben.zwirs@philips.com

Deria Guzel
Phillips Investor Relations
Tel: +31 20 59 77055
E-mail: derya.guzel@philips.com

About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a number one well being expertise firm centered on bettering individuals’s well being and well-being and enabling higher outcomes throughout the well being continuum – from wholesome dwelling and prevention to analysis, therapy and residential Until the care Philips leverages superior expertise and in-depth medical and shopper insights to ship built-in options. Headquartered within the Netherlands, the corporate is a frontrunner in diagnostic imaging, image-guided remedy, affected person monitoring and well being informatics, in addition to shopper well being and residential care. Philips generated gross sales of EUR 19.5 billion in 2020 and employs roughly 82,000 workers with gross sales and companies in additional than 100 international locations. Information about Philips may be discovered right here www.philips.com/newscenter,

forward-looking statements
This launch incorporates sure forward-looking statements concerning the monetary place, outcomes of Philips’ operations and enterprise, and sure plans and goals of Philips with respect to those objects. Examples of forward-looking statements embody statements about technique, projections of gross sales progress, future EBITA, future progress in Philips’ natural enterprise and the completion of acquisitions and disinvestments. By their nature, these statements contain danger and uncertainty as they relate to future occasions and circumstances and there are a variety of things that would trigger precise outcomes and developments to vary materially from these expressed or implied by these statements.

This press launch incorporates inside data throughout the which means of Article 7(1) of the EU Market Abuse Regulation

  • Philips Airfryer XXL

  • Philips Speedpro Max



Supply hyperlink