Philips unwinds lighting business to focus on medical and consumer business
Dutch listed conglomerate Philips on Tuesday announced the disposal of its 80.1% stake in its lighting components division for $2.8bn to Go Shale Capital.
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Go Scale Capital is a technology fund that is looking to build up its automotive LED business. The deal is part of Philips strategy to unwind its main lighting division via a stock market flotation, as the focuses on medical technology and selected consumer electronics.
Philips said the latest deal values its lighting components division at $3.3bn including debt. The division produced a 2014 profit of €141m on sales of €1.42bn.
Go Scale is funded by GSR Ventures, with offices in Hong Kong, Beijing and Silicon Valley, and Oak Investment Partners. Go Scale's investments include Boston Power, a US-based manufacturer of electric vehicle batteries, and Xin Da Yang, a Eco-EV company in China.