Philips Looking For $3 Billion + For Appliance Business Deal Tipped Soon
Philips appliance management in Australia who are already working on a major restructure of the business locally are also hanging out to see who will end up owning the business globally.
Recently ChannelNews revealed that Arçelik AŞ, a Turkish multinational household appliances manufacturer was taking over the Hitachi appliance business outside of Japan, the deal includes Australia and New Zealand and is worth around A$400M.
Currently Amsterdam-based Philips NV, is in talks with rivals and private equity firms for the sale of its domestic appliances business, that could be valued at between A$3 and $4 billion dollars making it one of the biggest appliances deals in several years.
In 2020 the business had revenues of over $33.4 Billion.
The Philips appliances business which includes kitchen appliances (juicers, blenders, Air fryer, food processors), home care (vacuum cleaners, air purifiers), garment care (irons, steam generators), coffee (appliances and accessories) reported revenues of $3ended 31 Dec 2019.
ChannelNews understands that several Chinese Companies are interested in the potential acquisition including Haier Group, Midea Group and Arcelik AS who acquired the Hitachi business.
Also looking at a potential acquisition is private equity firms, Blackstone Group, CVC Capital Partners and KKR & Co.
Philips is tipped to make an announcement shortly re the acquisition.
Last year chose to separate their domestic appliances Business into a separate legal structure under the Philips group ahead of any potential sale.
The process is expected to be completed in Q3 2021, according to information in the Company’s latest financials.
Philips is working on a strategy to focus on health-care equipment market, with the divestment to allow it to expand and invest in its consumer health and professional healthcare-related businesses.
Philips spun off its lighting business in 2016, listing it as Philips Lighting NV on the Amsterdam Stock Exchange, valuing the business at EUR 3bn.
Philips subsequently divested its entire stake in Philips Lighting, with the final 10.7% stake sold for EUR 357mn in Sep 2019.The TV business was spun off to TP Vision who are looking to launch a new range of premium TV’s in Australia.