Philips home appliance business sells its body at a high level with 3.7 billion euros.

Published: Mar 26, 2021 09:21

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Dutch medical equipment maker Philips announced on Thursday that it would sell its household appliances unit to Hillhouse for 3.7 billion euros ($4.37 billion), a deal that is subject to regulatory approval and is expected to close in the third quarter.

In addition, the two sides also signed a 15-year license agreement for the Philips brand, which means that the total value of the deal is 4.4 billion euros.

Philips planned to sell its household appliances division last year, with sales of 2.2 billion euros in 2020. Previously, a number of buyers have expressed interest, including Hillhouse, CDH Investments, home appliance maker TCL and other companies.

As for the reasons for the sale, Philips CEO Frans van Houten said earlier that Philips wanted to focus on the medical technology business in the future, and the home appliance business no longer matched the group's strategy, so it was considering selling its home appliance division.

Philips CEO Frans van Houten said in a statement that this deal means that we are out of the home appliance business and looking to the future, our focus is on expanding our leadership in health technology.

For acquirers, although Philips home appliance business is generally competitive, but with the help of Philips in the global market layout, can bring more market space, so many buyers rushed to seek acquisitions.

It is worth noting that the ultimate buyer, Hillhouse, was already an investor in Gree, the leader of home appliances, and to some extent has already stepped into the home appliance business, and the acquisition of Philips home appliance business is also reasonable.

Home Appliances Philips Hillhouse announcement

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