Philips Begins Talks With Potential Buyers of Domestic Appliances Unit
By Adria Calatayud
Koninklijke Philips NV said over the weekend that it has started
talking to parties interested in buying its domestic-appliances
unit, although it hasn't ruled out an initial public offering for
The Dutch health-technology group launched in January a review
of options for its domestic-appliances unit as part of its
yearslong shift toward medical technology. The separation process
is scheduled to be completed in the third quarter of 2021.
The company --which last Friday said it would acquire U.S.
remote medical-technology company BioTelemetry Inc.-- said it has
received interest for its appliances unit from strategic players in
the industry and private-equity investors in Europe and China.
However, Philips said it keeps all options open, including a
private sale and an IPO.
A Bloomberg article over the weekend indicated French
private-equity group PAI Partners SAS and China's CDH Investments
were preparing first-round bids for Philips' appliances unit,
citing unnamed sources. Apollo Global Management Inc., Advent
International Corp. and CVC Capital Partners Ltd. were also
reported to have been studying the business.
PAI Partners, CVC, Apollo and Advent all declined to comment
when contacted by Dow Jones Newswires. CDH didn't immediately
respond to a request for comment.
Philips's domestic-appliances unit --which makes kitchen
appliances, coffee makers, garment-care products and home-care
appliances such as vacuum cleaners and air purifiers-- is
headquartered in the Netherlands, has around 7,500 employees and
generated sales of 2.3 billion euros ($2.82 billion) in 2019.
In October, Philips Chief Executive Frans van Houten said in a
call with reporters that the business was doing well as it had
benefited from a pick-up in consumer demand.
Write to Adria Calatayud at email@example.com
(END) Dow Jones Newswires
December 21, 2020 07:00 ET (12:00 GMT)
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