Philips Exiting Home Entertainment Business29 Jan, 2013 By: Chris Tribbey
Royal Philips Electronics is exiting the home entertainment business, selling off its audio, video and multimedia businesses to Japan’s Funai Electric for €150 million ($202 million).
The deal for Philips’ audio, multimedia and accessories business is expected to close during the second half of 2013. The transfer of Philips video business, including DVD, will conclude in 2017, due to existing intellectual property licensing agreements.
The transaction is subject to regulatory filings.
“With this transaction we are taking another step in reshaping the consumer lifestyle portfolio and transforming Philips into the leading technology company in health and well-being,” said Philips CEO Frans van Houten. “I am confident that today's agreement with Funai, our partner for over 25 years, will create a promising future for Philips audio, video and entertainment, and continuity for our customers. It will leverage Philips' strong brand, strength in innovation and leadership position in these businesses, with Funai's strong presence in North and Central America, and Japan, and its supply and manufacturing expertise.”
Funai president and CEO Tomonori Hayashi added: “This transaction will allow us to continue moving forward and grow as a global company. We will benefit from Philips’ legendary know-how and innovation, as well as the excellent talent they have in place around the world, allowing us to work as a team to leverage and grow the Philips brand in audio, video and entertainment. Additionally, this will give Funai the opportunity to meet our goal of expanding our business into markets including Brazil, Russia, India and China."
Philips audio, video, multimedia and accessories business group is headquartered in Hong Kong and employs approximately 2,000 people.