A new lease of life for Philips Appliances thanks to €4.4bn deal with Hillhouse Investment
The sale of Philips Domestic Appliances business to Hillhouse Investment is now complete… with the company looking forward to a bright new future.
Royal Philips has announced that in September it had completed the sale of the Domestic Appliances business to Hillhouse Investment, a global investment firm. Philips originally announced the planned sale on March 25, 2021.
The transaction values Domestic Appliances, a global leader with €2.2bn sales in 2020 in kitchen, coffee, garment care and home care appliances, at an enterprise value of approximately €3.7bn. The total deal value amounts to approximately €4.4 billion resulting from an additional 15-year brand license agreement with annual payments that represent an estimated net present value of approximately €0.7bn.
“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’ €3.2bn 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.