Philips to Create New Lumileds and Automotive Lighting Businesses Company
Philips will start the process to combine its Lumileds (LED components) and Automotive lighting businesses into a stand-alone company within the Philips Group, the Dutch company announced on Monday.
Philips said it would explore strategic options to attract capital from third party investors for that business. It will remain a shareholder and customer of the new company.
"Guided by our long-term strategy, we continue to actively manage our portfolio of businesses," said Frans van Houten, Chief Executive Officer of Royal Philips. "Philips? strategy in Lighting is to intensify its focus on connected LED lighting systems and services, LED luminaires, and LED lamps for the professional and consumer markets. Both our Lumileds and Automotive lighting businesses are strong players in the lighting industry and ready to pursue more growth and scale, independently of Philips Lighting. As a world-leading lighting components business, they will have increased flexibility to attract additional investors to accelerate growth."
Sales of the combined businesses were approximately EUR 1.4 billion in 2013. The chief executive officer of the new company will be Pierre-Yves Lesaicherre, the current chief executive officer of Lumileds. The process to combine Lumileds and Automotive into an integrated business within the Philips Group is expected to be completed in the first half of 2015. Costs associated with setting up the combined business are expected to amount to EUR 30 million in the second half of 2014.
Philips and the new subsidiary would continue to collaborate on research and development, van Houten said.
"Guided by our long-term strategy, we continue to actively manage our portfolio of businesses," said Frans van Houten, Chief Executive Officer of Royal Philips. "Philips? strategy in Lighting is to intensify its focus on connected LED lighting systems and services, LED luminaires, and LED lamps for the professional and consumer markets. Both our Lumileds and Automotive lighting businesses are strong players in the lighting industry and ready to pursue more growth and scale, independently of Philips Lighting. As a world-leading lighting components business, they will have increased flexibility to attract additional investors to accelerate growth."
Sales of the combined businesses were approximately EUR 1.4 billion in 2013. The chief executive officer of the new company will be Pierre-Yves Lesaicherre, the current chief executive officer of Lumileds. The process to combine Lumileds and Automotive into an integrated business within the Philips Group is expected to be completed in the first half of 2015. Costs associated with setting up the combined business are expected to amount to EUR 30 million in the second half of 2014.
Philips and the new subsidiary would continue to collaborate on research and development, van Houten said.
