Philips intends to merge Lumileds and automotive lighting division


The Dutch lighting and medical equipment manufacturer Philips announced recently that its will merge Lumileds LED with its automotive lighting division, and set an independent subsidiary, and this part of business may be stripped in the future.

Philips said after the establishment of the new company which merged by Lumileds LED and automotive lighting division, the lighting division will still keep the key customers; but Philips will look for third-party investors, and the company did not rule out the possibility that may become a minority shareholders of the new company.

Philips CEO Frans van Houten said: As a strong independent company, they will get more flexibility, and then attract more investment and customers, finally accelerate the growth, and enhance the scale.

The merge of Lumileds LED and automotive lighting division is expected to be completed in the first half of 2015, the new company will be charged by Lumileds current CEO Pierre-Yves Lesaicherre, Philips is expected to spend about 30 million euros for this issue later this year.

Philips did not disclose the valuation of the new company, while ING Group analyst Robin van de Broek expects that the new company’s value will reach 2 billion euros. German lighting manufacturer Osram will become the major competitor of this new company, and Osram itself is split from Siemens Group last year.

Lumileds is a of high-power LED lamp manufacturer, and Philips automotive lighting division is a major supplier for Volkswagen, Audi and BMW, this two sectors overall sales in 2013 of about 1.4 billion euros (about 1.9 billion U.S. dollars).

TypeInfo: Industry News

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