Philips announced that it would review options for its domestic appliance business as it no longer fits with the future direction of the company as a health technology leader.
Philips will create a separate legal structure for the appliance business within the Philips Group which is expected to be completed by mid-2021.
In 2019, the appliance division, consisting of kitchen appliances, coffee, garment care and home care, recorded sales of 2.3 billion Euros (A$3.75 billion). The most successful products were the Airfryer XXL, Automatic Coffee Machine with LatteGo, Perfect Care Elite steam generator, Air Purifier and SpeedPro Max Aqua vacuum cleaner.
Royal Philips CEO, Frans van Houten said the appliance business had made an important contribution to Philips but was not a strategic fit for the future.
“We are committed to finding a good home for this business to continue to thrive and grow over time as we expand and invest in our consumer health and professional healthcare related businesses. We are also committed to a seamless transition of the business with continuity for our employees, partners and customers. At the same time, we will continue to innovate and invest in our personal health business including oral care, mother and childcare and personal care.”