Philips Sells Appliances to Hillhouse in $4.4 Billion Deal
- CEO Frans van Houten narrows focus to health-care equipment
- Divestment includes 15-year rights agreement for Philips brand
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Royal Philips NV will sell its domestic-appliances unit to private equity firm Hillhouse Capital as the formerly sprawling Dutch conglomerate completes its transformation to a focused health-care equipment maker.
The deal with Hillhouse values the appliances business at about 3.7 billion euros ($4.4 billion), Philips said in a statement Thursday. The Amsterdam-based company expects to receive cash proceeds of about 3 billion euros once the deal is completed, which is expected in the third quarter.