Philips’ domestic appliance business has been sold for A$5.8 billion dollars to an Asian investor company.
In Australia, the business sells air fryers, coffee machines and wellness products and has been witnessing record growth during the COVID-19 pandemic.
The buyer is private equity firm Hillhouse Capital who will pay A$5.8 billion once the deal is completed.
Philips has already exited the TV market, as well as the DVD player and lighting markets with the appliance division marking Philips’ exit from non-health care-related markets.
Chief Executive Officer Frans van Houten has made a string of health-related acquisitions to build out Philips’ telehealth and diagnostics portfolio and provide a one-stop shop for hospitals and clinics looking to optimize costs.
“This transaction concludes our major divestments,” Van Houten said. “Going forward, our focus is on extending our leadership in health technology.”
Philips settled on Hillhouse’s offer because it’s convinced the Asia-focused investor will be the right home for the appliances business, Van Houten said during a call with reporters. The divested business has agreed to pay about 700 million euros to keep using the Philips brand for 15 years.
Factors including value, but also deal certainty, were considered for the decision, the CEO said.
The appliances business, which includes coffee makers, air purifiers and other products, generated 2.2 billion euros in sales last year.
