Philips sells LED lighting components division, Lumileds, a Go Scale Capital

With the acquisition by Go Scale Capital of the Led lighting division, Lumileds, by 2.280 million euros, Philips will focus its efforts on the medical technology and consumer electronics market.

The Go Scale Capital consortium has acquired the 80,1% of the Led lighting components division of Philips, Lumieds, by 2.800 million dollars (2.280 million euros) and a deferred conditional payment of others 100 million dollars. An operation that is expected to be completed during the third quarter of this year.

After the operation, The new company will continue its activity under the name Lumileds and will be led by its CEO Pierre-Yves Lesaicherre. Philips, that will retain a share of the 19,9%, will continue selling lighting solutions, but as an independent company, focusing more on service, in supplying a lighting solution, before in the manufacturing of the devices.

As already posted Digital AV Magazine, Last December Philips announced its intention to split its lighting and healthcare businesses, creating two new independent divisions. On the one hand, Lumileds, that focuses its strategy on Led technology, and on the other, HealthTech, that focuses its activity in the environment of health and consumer products. After purchase, The latter will be the main business axis of the Dutch company.

The CEO of Royal Philips, Frans van Houten, has shown its optimism with this operation since “GO Escala capital has investors who support the growth of the company and have experience in creating and expanding technology companies. We have significantly improved the performance of the Led components business and optimized the industrial presence in automotive lighting activities in recent years., in addition to creating a solid management team and an innovative portfolio. We are convinced that together with GO Escala Capital, Lumileds can grow even more, attract more customers and continue to evolve as an independent company”.

Philips' Lumileds subsidiary obtained 2014 a benefit of 141 million euros and sales of 1.420 million. Near the 20% of sales from the company's core lighting business, correspond to its lighting components division.