Health technology company Philips announced on Thursday that it had signed an agreement to sell its home appliance service to investment firm Hillhouse Capital for 24 billion yuan (about 4.4 billion euros), a sum comprising 3.7 billion euros for the sale of its core service and 700 million euros for brand authorization.
Philips, headquartered in the Netherlands, is a global leader in kitchen, coffee, clothing care and home care appliances. With more than 7,000 employees worldwide, it carries out innovation, manufacturing and commercial activities in more than 100 countries, with its sales volume reaching 2.2 billion euros in 2020. Its products include automatic espresso machines, air purifiers and vacuum cleaners, among others.
“I am very glad that Philips has cooperated with Hillhouse Capital Group to further solidify our leading position in the house appliances market and expand innovative channels,” said Frans van Houten, Philips’ worldwide chief executive. He continued to say that “after the acquisition, Philips will focus on improving its health technology and transforming into a health services company aiming at providing professional health care services for customers.”
In recent years, Hillhouse Capital has actively introduced many overseas brands and successful enterprises to China, hoping to bring global high-quality brand assets and advanced technologies to the country. The firm also aims to bring in overseas business practices and management systems, so as to encourage local enterprises to participate in global competition in a more stable manner.
As an international investment institution, Hillhouse Capital has achieved sustainable long-term growth through in-depth cooperation with entrepreneurs and management teams all over the world. With professional experience in the field of digital technology, Hillhouse Capital have helped enterprises it invests in to realize digital innovation and business growth.
While cooperating with retail enterprises around the world, it introduced the Direct to Consumer (DTC) mode to achieve the integration of online and offline services across the fields of supply chain, membership systems, user experience, marketing, product customization, and more. Therefore, there is a high degree of anticipation regarding the technology and industrial resources Hillhouse Capital will introduce to Philips after the merger.
“I believe that with the professional knowledge in the fields of e-commerce, supply chain and digital service of Hillhouse Capital, Philips will continue to bring meaningful innovation to the family life of consumers. Based on well-matched product portfolio, extensive consumer base and advanced technology, Philips hopes consumers to lead a healthier and happier life. We are looking forward to working with Hillhouse Capital,” said Henk Siebren de Jong, chief executive officer of Philips.
This acquisition is subject to regulatory approval, and is expected to be completed by the end of the third quarter of this year.