Philips sells its audio division, Woox Innovations, to Gibson Brands

Dutch brand Philips, which is publicly traded on both the Amsterdam and New York exchanges, has today announced the sale of its Woox Innovations audio business to American company Gibson Brands. This announcement comes just a few months after Philips established Woox as a wholly owned subsidiary based out of Hong Kong.

Philips media statement:

Under the terms, Gibson Brands will pay $135 million and a brand license fee, relating to a license agreement for an initial period of 7 years. The deal is expected to close in the second half of 2014, subject to customary conditions, including regulatory filings and works council procedures.

Gibson Brands, based in Nashville, United States, has most recently invested in audio brands including Onkyo and TEAC as part of its ambition to become the global leader in music and sound. This transaction will leverage Gibson Brands’ strong market presence in the U.S. and Japan, and Woox Innovations’ market strength with Philips-branded audio and home entertainment products in Europe, China, Latin America and other growth geographies.

“With this transaction, we are taking another important step in Philips’ transformation to become a leading technology company in health and well-being,” said Philips chief executive officer Frans van Houten. “Philips and Gibson Brands have played significant roles in shaping the home entertainment and music industries and with this agreement the Philips brand will continue to be associated with innovative products in this space.”

“This agreement is the most significant step yet in Gibson Brands’ journey to become the largest music and sound technology company in the world,” said Gibson Brands chairman and CEO Henry Juszkiewicz. “By acquiring Philips’ audio and home entertainment business, our goal is to continue to provide the most exceptional consumer audio products and experiences in the world. I am thrilled to extend the reach of Gibson Brands around the world and to welcome this great team to the Gibson family.”

Philips audio products are distributed in Australia by the South Australian based Powermove Distribution, which acquired the rights for longterm wholesale partner Crest in late 2013. Gibson’s authorised distributor in Australia is the Melbourne based Australian Musical Imports.

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