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Philips sells majority interest in Lumileds

Royal Philips has signed an agreement to sell an 80.1% interest in Lumileds, a supplier of LED components and automotive lighting, to certain funds managed by affiliates of Apollo Global Management, LLC.
Philips will retain its 19.9% interest in Lumileds for a minimum period of three years following completion of the transaction – subject to customary drag-along and tag-along conditions or an IPO.

The transaction values Lumileds at an enterprise value of approximately USD 2 billion, including debt and debt-like items. Philips expects to receive cash proceeds – before tax and transaction-related costs – of approximately USD 1.5 billion. The transaction is expected to be completed in the first half of 2017, subject to some regulatory approvals.

“With this transaction, we will be completing an important phase of the transformation of our portfolio and I am satisfied that in the Apollo managed funds we have found the right owner for Lumileds,” said Frans van Houten, CEO of Royal Philips.

“In line with our strategic focus on health technology, Lumileds has been operating as a standalone company within Philips since early 2015. With Apollo managed funds acquiring a majority interest in Lumileds and partnering with Philips, Lumileds is now well-positioned for further growth and value creation, building on its robust innovation pipeline, technology leadership and strong customer base.”

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March 25 2017 3:01 PM V8.0.2-2