AMSTERDAM — Philips, which split its business operations into medical and lighting entities back in Sept. 2014, with the hopes of spinning off its lighting business, has not been able to find a buyer willing to pay what it wants for the whole lighting entity, which analysts now value at about $5.8 billion.
As an alternative to the sale of its lighting unit, which helped launch the Dutch company back in 1891, Philips is now working with Goldman Sachs and JPMorgan to sell off a 25 percent stake in its lighting business through an initial public offering (IPO), with sales of remaining assets taking place in a multi-year process.
The timing of the IPO will depend on market conditions, but analysts believe that it will help hasten the sale of Philips’ lighting entities, which have been coming under increasing pricing pressures as lighting as a whole moves from traditional incandescent bulbs to LEDs and other lighting alternatives.
Philips announced plans for the IPO on May 3. As a standalone company, its lighting business currently has sales, profit and debt estimated at about 7.47 billion euros, 331 million euros and 950 million euros, respectively ($8.52 billion, $377 million and $1.08 million).
For more information, please visit www.philips.com.
