Philips declared today that the company has signed an agreement to sell its home appliance business to Hillhouse Capital.
In 2020, Philips’ home appliance business had sales of 2.2 billion euros. The transaction is expected to be completed in the third quarter of this year, given that some customary closing conditions are met, including the approval of relevant regulatory authorities.
This transaction valued Philips’ home appliance business at approximately 3.7 billion euros. After the transaction is completed, after deducting taxes and transaction-related costs, Philips is expected to receive approximately 3 billion euros in cash.
Additionally, Philips will also sign an exclusive brand license agreement with the sold home appliance business to use the Philips brand and certain other Philips home appliance brands for a period of 15 years, renewable.
During the period, the brand royalties paid to Philips were approximately 700 million euros, bringing the total transaction volume to approximately 4.4 billion euros.
(Source)
