Philips sells majority stake in LED components, automotive lighting business

Royal Philips has signed a deal with a consortium led by GO Scale Capital to sell 80.1% interest in Philips’ combined LED components and Automotive lighting business.

Following the transaction, the new company will continue under the name Lumileds, led by CEO Pierre-Yves Lesaicherre. 

“We have significantly improved the performance of the LED components business and optimised the industrial footprint in the Automotive lighting business over the last few years, and established a strong management team and innovation pipeline. We are therefore convinced that together with GO Scale Capital, Lumileds can grow further, attract more customers and increase scale as a stand-alone company,” said Frans van Houten, CEO of Royal Philips.

The transaction values the business at an enterprise value of approximately US$3.3 bn.

GO Scale Capital is a new investment fund sponsored by GSR Ventures and Oak Investment Partners.

Lumileds is a supplier of lighting components to the general illumination, automotive and consumer electronics markets with operations in more than 30 countries and has approximately 8300 employees worldwide. In 2014, it generated sales of around US$2 bn and a double-digit EBITA margin.

Following the separation of Lumileds, Philips Lighting will focus on the exciting and growing lighting solutions markets in which it has leading market positions. As previously announced in September 2014, Philips has started the process of creating two companies focused on health and lighting solutions opportunities.