Philips will sell its domestic appliance business to global investment firm, Hillhouse Capital, for $3.7 billion Euro (AUD$5.7 billion) with the transaction expected to be completed in Q3 2021.
The announcement comes more than 12 months after Philips shared plans to sell the business, encompassing kitchen, coffee, garment care and home care products.
With offices in Beijing and China, Hillhouse Capital has deep experience in integrating technology and data-driven architectures to drive digital innovation and business expansion. The firm has worked with a range of global consumer and retail businesses to deepen consumer engagement and introduce innovative direct-to-consumer models, growing new customer segments and markets.
Royal Philips CEO, Frans van Houten said it was pleasing to find a new home for the domestic appliance business to further expand its market leadership, strong brand and pipeline of new innovation.
“Going forward, our focus is on extending our leadership in health technology and continuing our transformation into a solutions company supporting professional healthcare customers and consumers with their personal health,” he said.
Hillhouse Capital CEO and founder, Lei Zhang added, “We look forward to joining forces with Philips to expand into new markets and capture more growth opportunities globally, We are aligned with Philips’ mission to bring high quality products to support healthy and fulfilling lifestyles for consumers across the globe.”
Philips Domestic Appliances CEO, Henk de Jong concluded: “I am convinced that together with Hillhouse Capital’s deep e-commerce, supply chain and digital expertise, we will be in a great position to continue bringing meaningful innovations to the consumer’s homes.
“Based on our market leading product portfolio, broad customer and consumer base and R&D capabilities, we are keen to keep supporting families and individuals to lead healthier and happier lives. We look forward to working with Hillhouse to capture additional growth opportunities.”
The Domestic Appliances business will remain headquartered in the Netherlands and is now active in more than 100 countries. Successful products include the Airfryer, Fully Automatic Espresso Machine with LatteGo, Perfect Care Elite steam generator, Air Purifier and SpeedPro Max vacuum cleaner.