Philips later this week announced that it had signed an agreement to sell its home appliances division. The division, with 2020 revenues of € 2.2 billion, produces kitchen appliances, coffee machines, clothing care products and other household appliances. Its new owner will be the global investment company Hillhouse Capital. The transaction is expected to close in the third quarter of 2021 subject to normal closing conditions, including obtaining appropriate regulatory approvals.
The deal is estimated at around 3.7 billion euros. Upon completion of the transaction, Philips expects to receive revenues after taxes and transaction-related costs of around € 3 billion. In addition, Philips will enter into an exclusive licensing agreement to use the Philips brand and selected other Philips home appliance brands to manufacture, sell and market home appliance products worldwide for 15 years, renewable. Payments for this period total about 0.7 billion euros, bringing the total value of the transaction to 4.4 billion euros.
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