Matthew Dow • 14 Comments
Stephen Simpson, CFA
Mon, Apr. 25, 2:44 AM
- Philips (NYSE:PHG) is leaning towards holding an IPO of its lighting unit - its original line of business - rather than selling the operations, the company said as it disclosed a better-than-expected rise in overall Q1 profits.
- Adjusted earnings before interest, taxes and amortization climbed 14% to €374M ($420M), topping consensus of €362M.
- Comparable sales grew 5% to €5.51B.
- The divestment of the lighting operations, which could be worth €5B, will leave Philips to focus on healthcare technology. (PR)
Thu, Mar. 3, 6:18 PM
- P-E firms Blackstone (NYSE:BX) and Onex are teaming up to bid for Philips' (NYSE:PHG) lighting unit, which could be worth €4.5B-€5B, WSJ reports.
- Apollo Global (NYSE:APO) and U.K.'s Melrose Industries also are competing for the unit, according to the report.
- The lighting unit, which includes PHG's traditional lamps operation as well as a business that makes lamps with energy-efficient LEDs, had €7.4B in sales last year.
Fri, Jan. 22, 3:25 AM
- Philips (NYSE:PHG) has terminated a $3.3B deal to sell 80.1% of its Lumileds division to a group of Asian investors, after the deal ran into unspecified objections from the U.S. government.
- The would-be buyer, Go Scale Capital, comprises GSR Ventures, Oak Investment Partners, Asia Pacific Resource Development, and Nanchang Industrial Group.
- In 2015, Lumileds generated sales of approximately $2B.
- Previously: Philips returns to profit; Lumileds sale in doubt (Oct. 26 2015)
Tue, Jan. 12, 10:07 AM
- Sky News reports Melrose plc, a manufacturing investment firm, is thinking of making a £4B ($5.76B) bid to buy Philips' (PHG +2.1%) lighting unit.
- Last week, Reuters reported Philips is set to receive offers for its lighting business, and that Germany's Osram is expected to draw bids for its traditional lamps business. In November, Bloomberg reported of interest in Philips' lighting ops from P-E firms.
- Philips is higher on a morning in which both U.S. and European equities are faring well.
Fri, Jan. 8, 5:45 PM
- Reuters reports Philips (NYSE:PHG) is set to receive offers for its lighting business from multiple P-E firms, as well as Chinese bidders. In addition, U.S. lighting firm Acuity Brands (NYSE:AYI) "may show interest" in parts of the business. A valuation of €5B ($5.45B), or 7-8x expected core earnings, is deemed likely.
- Meanwhile, German lighting giant Osram (OTCPK:OSAGF) has reportedly "asked for tentative bids" for its traditional lamps business, which sources think could be valued at €500M ($545M). Chinese LED maker MLS is expected to bid, as is a consortium featuring a Chinese firm and P-E firm Bain.
- Bloomberg reported in November P-E firms have shown interest in Philips' lighting unit. At the time, sources told Bloomberg the business could sell for €5.5B.
Nov. 4, 2015, 5:18 PM
- Royal Philips' (NYSE:PHG) lighting division is attracting interest from some of the world’s largest P-E firms in a deal that could value the unit at ~€5.5B ($6B), Bloomberg reports.
- CVC Capital Partners, in partnership with KKR, Bain Capital and Onex, are among buyout firms in early stages of preparing bids for the division, according to the report.
- PHG is splitting its lighting division from its health care and consumer lifestyle units as the company seeks to take advantage of growing demand from consumers to monitor their health through devices and phone applications.
Oct. 26, 2015, 3:53 AM
- Philips (NYSE:PHG) has warned that the planned $2.8B sale of its Lumileds business hit a regulatory hurdle in the U.S., as it returned to a net profit in the third quarter.
- Earlier this year, the industrial group agreed to a sale of an 80.1% Lumileds stake to a consortium led by Chinese GO Scale.
- Net profit for the period came in at €324M, compared with a net loss of €103M in the same period a year earlier.
- Q3 results
Mar. 31, 2015, 3:58 AM
- Philips (NYSE:PHG) has agreed to sell an 80.1% stake in its lighting components division to Go Scale Capital, a fund sponsored by GSR Ventures and Oak Investment Partners, as chief executive Frans van Houten focuses the Dutch company on the consumer health-care market.
- Philips will receive $2.8B for the sale and will retain the remaining shares in the unit.
- The deal is also prelude to an even bigger strategic move: spinning off its main lighting division, the world’s largest lighting maker, in a multibillion-euro IPO next year.
- Previously: Bloomberg: Philips close to selling 80% of lighting components unit (Mar. 19 2015)
Mar. 19, 2015, 5:05 PM
- Bloomberg reports P-E firms KKR and CVC Capital are near a deal to buy 80% of Philips' (NYSE:PHG) lighting components unit at a €2.5B ($2.7B) valuation - the low end of a €2.5B-€3B range mentioned in a November report about P-E interest. An announcement could happen next week.
- Bain Capital, previously reported to be interested in the business, is said to be out of the running. A group of Asian investors is reportedly also involved in negotiations.
- Philips announced this morning it plans to do a multibillion-euro IPO for its lighting business (separate from the components business) next year, after originally announcing plans to spin it off last September.
Dec. 17, 2014, 2:32 AM
Nov. 12, 2014, 3:53 PM
- Philips (PHG +0.4%) has "attracted bids from several private equity groups for the majority of its lighting components business," Reuters reports. Bain, KKR, and other firms are said to have made offers in the €2.5B-€3B ($3.1B-$3.7B) range.
- The report comes two months after Philips announced it's spinning off its lighting unit. Prior to that, the company combined its Lumileds (LED) and car lights businesses, and has reportedly hired Morgan Stanley to find a buyer for them.
- Cree (CREE +3%), which has often been the subject of M&A rumors (some of them involving Philips) over the years, has rallied today.
Jun. 30, 2014, 12:35 PM
- Both Philips (PHG +4%) and Cree (CREE +3.4%) are up strongly after Philips announced it's merging its Lumileds LED component unit with its automotive lighting business to create a standalone company, and will "explore strategic options to attract capital from third-party investors for [the] business."
- The move could be fueling hopes Philips will try to merge the unit with Cree, which competes against Lumileds in an LED component market that has seen intense price competition. As it is, Cree has often been the subject of M&A rumors (some of them involving Philips).
- Philips, for its part, argues spinning off Lumileds and automotive lighting will help them grow sales to customers who currently view Philips as a rival. The company adds its internal lighting business will be focused on system/lamp sales going forward, and that it's open to an IPO for the spinoff.
Jun. 30, 2014, 3:55 AM
- Philips (PHG) will merge its Lumileds LED components and Automotive lighting subsidiaries into one unit, as the company attempts to bring in more third-party capital.
- "As a world-leading lighting components business, they will have increased flexibility to attract additional investors to accelerate growth," says CEO Frans van Houten.
- In 2013, the two divisions amassed more than $1.9B in combined sales. The merger is expected to take place in the first half of 2015, and will cost Philips around €30M in the second half of this year.
Apr. 28, 2014, 12:02 PM
- Gibson Brands is buying Philips' (PHG -1%) Woox Innovations unit, a maker of headphones, home entertainment systems, and other A/V hardware, for $135M + a brand license fee. The deal is expected to close in 2H14.
- Philips says the sale is part of its efforts to transform into "a leading technology company in health and well-being." The company will hold onto Woox's video hardware ops until 2017, and provide its products to Gibson through a distribution agreement.
Jan. 29, 2013, 8:21 AM
Royal Philips Electronic (PHG) agrees to sell its home audio and video business to Funai Electric of Japan for €150M ($201.5) and a brand licensing fee as the consumer electronics pioneer continues a shift into more profitable industrial products. The move sheds a big part of Philips’ history, which includes helping invent the compact disc and the DVD.| Jan. 29, 2013, 8:21 AM
Jan. 26, 2012, 3:14 AM