Philips has agreed to sell its Lumileds business to a private equity group, Apollo Global Management LLC. The deal means that 80.1% of the company will be sold, with Philips holding the balance for at least three years (subject to conditions). The deal values the business at around $2 billion and Philips will receive $1.5 billion in cash.
The deal is expected to complete in the first half of 2017.
Analyst Comment
Philips had previously tried to sell Lumileds for around $3.3 billion to Chinese interests, but this sale was blocked by the US authorities on security grounds. (Philips Sale of Lumileds Blocked). (BR)
