AMSTERDAM, March 31, 2015 /PRNewswire/ --
GO Scale Capital, an investment fund sponsored by GSR Ventures
and Oak Investment Partners has announced today that it will
acquire an 80.1% interest in Philips' combined LED components and
Automotive lighting business, with Philips retaining the remaining
19.9%* interest. The transaction values the business at an
enterprise value of approximately USD 3.3
billion. The transaction is expected to be completed in the
third quarter of 2015, subject to closing conditions, including
customary regulatory approvals.
Following the transaction, the new company will continue under
the name Lumileds, led by CEO Pierre-Yves
Lesaicherre. Philips will remain an important customer of
Lumileds and will continue the existing innovation and supply
partnership. The transaction includes the transfer of a broad
patent portfolio of more than 600 patent families related to LED
manufacturing and automotive lighting from Philips to Lumileds.
Sonny Wu, co-founder and managing
director of GSR Ventures and chairman of GO Scale Capital, who will
serve as interim Chairman of Lumileds following the completion of
the transaction, stated that "the Lumileds acquisition will be a
perfect example of how GO Scale turns cutting edge technologies
into world class companies. GO Scale Capital will focus on
expanding Lumileds' opportunities by investing in its global
centers of operation and in the fast growing general lighting and
automotive industries. Through Lumileds' world-leading technology
in key verticals such as LED chips, LED mobile flash and automotive
lighting, together with a customer base including the likes of BMW,
Volkswagen and Audi, we expect to see significant growth and
unparalleled inroads into new opportunities such as electric
vehicles."
GO Scale Capital is a new investment fund sponsored by GSR
Ventures and Oak Investment Partners. The consortium partners are
Asia Pacific Resource Development, Nanchang Industrial Group and
GSR Capital. The GO Scale Capital team has deep technology
expertise and a track record in scaling up disruptive technologies
in China. Current investments
include Boston Power, a leading manufacturer of electric vehicle
batteries and Xin Da Yang, a fast
growing Eco-EV company in China.
The team brings deep knowledge of the technology and new energy
sectors. Through their past investments in the LED industry, they
have access to complementary technologies and manufacturing
capacity. This uniquely complements Lumileds' high-power LED
manufacturing footprint and expertise, and the combination offers
opportunities for the company to pursue further growth and scale
through the GO Scale model.
"Philips is very positive about this transaction with GO Scale
Capital as its principals are long-term, growth-oriented investors
with a track record of building and expanding technology
companies," said Frans van Houten,
CEO of Royal Philips. "We have
significantly improved the performance of the LED components
business and optimized the industrial footprint in the Automotive
lighting business over the last few years, and established a strong
management team and innovation pipeline. We are therefore convinced
that together with GO Scale Capital, Lumileds can grow faster,
attract more customers and increase scale as a stand-alone
company."
"I am convinced that together with the new investors led by GO
Scale Capital, Lumileds will extend its leading product portfolio
of lighting components and continue to achieve robust growth," said
Pierre-Yves Lesaicherre, CEO of
Lumileds. "With our strong technology leadership, we are ready to
address the future needs of our customers. We will work closely
with our industry partners and customers to lead innovation and the
transformation of our industry."
Lumileds is a leading supplier of lighting components to the
general illumination, automotive and consumer electronics markets
with operations in more than 30 countries and has approximately
8,300 employees worldwide. In 2014, it generated sales of
approximately USD 2 billion and a
double-digit EBITA margin.
* including a 34% interest in the Lumileds US operations
About GO Scale Capital
Sponsored by GSR Ventures and Oak Investment Partners GO
Scale Capital is a growth stage fund under the GSR Capital families
of funds, with offices in Beijing,
Hong Kong and Silicon Valley. The
fund's team brings together years of cross border operating
experience and successful co-investment history in mature and
cutting edge technologies. The fund's goal is to scale up its
investments in China for global
markets.
About Philips
Royal Philips (NYSE: PHG, AEX:
PHIA) is a diversified health and well-being company, focused on
improving people's lives through meaningful
innovation in the areas of Healthcare, Consumer Lifestyle and
Lighting. Headquartered in the
Netherlands, Philips posted 2014 sales of EUR 21.4 billion and employs approximately
105,000 employees with sales and services in more than 100
countries. The company is a leader in cardiac care, acute care and
home healthcare, energy efficient lighting solutions and new
lighting applications, as well as male shaving and grooming and
oral healthcare. News from Philips is located
at http://www.philips.com/newscenter.