Philips is selling its domestic appliances department to the Chinese investor Hillhouse Capital. In recent years, the Dutch multinational has divested most of its consumer products to increase its focus on medical technology.
Phasing out consumer products
Hillhouse Capital is paying 3.7 billion euros for the division, which manufactures hoovers, coffee machines (like Senseo) and irons, among other things. Two other Chinese parties also had their eye on the department, but they missed the boat. The division, which generated a turnover of 2.2 billion euros last year, would earn Philips three billion euros, Belgian newspaper De Tijd writes.
The division has been for sale for over a year. In recent years, the white goods, television, consumer electronics and lighting divisions have successively been sold. Philips wants to focus primarily on medical technology. The only consumer products that the company will continue to produce are personal care appliances, such as electric toothbrushes and shavers.