Philips to sell majority interest in Lumileds

Royal Philips announced that it has signed an agreement to sell an 80.1% interest in Lumileds, a leading supplier of LED components and automotive lighting, to certain funds managed by affiliates of Apollo Global Management. Philips will retain the remaining 19.9% interest in Lumileds. The transaction values Lumileds at an enterprise value of approximately USD 2 billion, including debt and debt-like items.

Philips expects to receive cash proceeds, before tax and transaction-related costs, of approximately USD 1.5 billion and participating preferred equity. The transaction is expected to be completed in the first half of 2017, subject to customary closing conditions, including the relevant regulatory approvals.