Philips completes sale of Domestic Appliances business to global investment firm Hillhouse Investment
Royal Philips has successfully completed the sale of its Domestic Appliances business to Hillhouse Investment for approximately EUR 4.4 billion. The deal includes an enterprise value of EUR 3.7 billion, with cash proceeds after tax of around EUR 3 billion. This transaction will be reported under discontinued operations in Q3 2021. Philips aims to strengthen its remaining Personal Health business, valued at EUR 3.2 billion, focusing on healthy living and disease prevention through innovative solutions. The divestment aligns with Philips' strategy to optimize its health technology portfolio.
- Completed sale of Domestic Appliances business for EUR 4.4 billion.
- Cash proceeds after tax of approximately EUR 3 billion.
- Focus on strengthening remaining Personal Health business valued at EUR 3.2 billion.
- None.
September 2, 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. The results of this transaction, which Philips announced on March 25, 2021, will be reported under discontinued operations in the third quarter of 2021. Philips received cash proceeds after tax and transaction-related costs of approximately EUR 3 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. 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.
“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. “I am confident that the Domestic Appliances business will be able to expand on its market leadership with the support of Hillhouse Investment. 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. We are executing on our strategy to deliver integrated solutions that support professional healthcare customers achieve the Quadruple Aim and consumers with their health.”
“We are in a great position to continue bringing meaningful innovations to the consumer’s home in areas such as kitchen, coffee, garment care and home care appliances,” said Henk de Jong, CEO of Domestic Appliances. “We look forward to embark on this new partnership with Hillhouse Investment, building on our longstanding consumer, customer and partner relationships, as well as our market leading positions across our portfolio and the brand license partnership with Philips.”
Following the sale of Domestic Appliances, Philips’ EUR 3.2 billion Personal Health businesses will continue to shape its important role in the company’s integrated health continuum approach through products and solutions that support healthy living and prevention of diseases. Philips is a global leader in oral healthcare, personal care and mother & child care, areas that are essential building blocks of consumer health.
For further information, please contact:
Ben Zwirs
Philips Global Press Office
Tel.: +31 6 15213446
E-mail: ben.zwirs@philips.com
Derya Guzel
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail: derya.guzel@philips.com
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being, and enabling better outcomes across the health continuum – from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2020 sales of EUR 17.3 billion and employs approximately 77,000 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.
Forward-looking statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
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