- Jul 21, 2017 -
AMSTERDAM – Philips, the €15B Dutch conglomerate founded in 1891 and now active in sectors ranging from lighting to consumer and healthcare products, announced on Sept. 22 a plan to split into two entities – with its €7B lighting business on one side and the company’s consumer and healthcare divisions merging to form the other. The Philips brand will be retained for both the Lighting and HealthTech companies.
Although the company anticipated significant restructuring charges – €50 million– to accrue from 2014 to 2016, the anticipated cost-savings payoff could add up to €100 million in 2015 and an additional €200 million in 2016. The move would also let Philips pursue different ownership options for a separate lighting company, with dedicated access to capital markets.
“The time is right to take the next strategic step for Philips,” said Frans van Houten, Philips’ chief executive, in a news release. “Both companies will be able to make the appropriate investments to boost growth and drive profitability, ultimately generating significantly more value for our customers, employees and shareholders.”