Enlarge image
Philips Senseo espresso machines: sold to Asian investor
Photo: Sabeth Stickforth / imago images
The Dutch company Philips is selling its household appliances division.
The production of devices such as vacuum cleaners, coffee machines, irons and garden tools will be sold for around 3.7 billion euros to the Hillhouse Capital investment fund from Hong Kong, Philips announced on Thursday in Amsterdam.
The group expects that the bottom line - after deducting taxes and costs - will be around three billion euros.
In addition, Philips will receive 700 million euros in 15 years for licenses.
The sale was expected and should be completed in the third quarter of 2021.
Philips relies on medical technology and personal hygiene products
The household appliances division had sales of 2.2 billion euros in 2020.
The company is to remain in the Netherlands.
7,000 employees work there worldwide, and layoffs should not be planned for the time being.
In the future, the group intends to concentrate primarily on medical technology and personal hygiene products such as toothbrushes and razors, which is already the group's main field of activity.
In medical technology, sales in 2019 were 5.85 billion euros.
The sale of the household division fits in with the corporate strategy.
Philips grew up with lightbulbs, televisions, vacuum cleaners, razors, and audio technology.
Other branches had already been sold, such as the production of TV sets, audio equipment and light bulbs.
The lighting business went public in 2018 under the name Signify.
"With this transaction we have completed our major sales," said Philips boss Frans van Houten.
In the future, the focus will be on "expanding leadership in medical technology".
According to Philips, the fund from China will be allowed to sell vacuum cleaners or deep fryers under the Philips name for another 15 years and will pay the Dutch a total of around 700 million euros.
Hillhouse wants to open up new markets for Philips products.
Miele and Bosch could put sales under pressure
According to industry experts, the sale could have long-term consequences for Miele or Bosch.
Because: Hillhouse Capital, a major Asian investor, also holds stakes in Chinese household appliance manufacturers such as Gree and Midea.
"The investor will certainly look for synergy effects and then sell Chinese kettles and perhaps also large appliances such as washing machines worldwide under the Philips brand," says an industry expert in SPIEGEL.
“Until 15 years ago, there were still Philips washing machines.
If Chinese washing machines with the Philips logo soon hit the market here, that would put Miele or Bosch under a lot of pressure. ”Consumers might not even notice that they had bought a Chinese product.
caw / dpa-AFX / AFP