Philips have signed an agreement with a consortium led by Go Scale Capital, who are to acquire an 80.1% interest in Philips’ combined LED components and automotive lighting business, with Philips retaining the remaining 19.9% stake. The transaction puts the business at an enterprise value of approximately USD $3.3bn. Philips expect to receive cash proceeds before tax and transaction related costs of approximately $2.8bn, and a deferred contingent payment of up to $100m. The transaction is expected to be complete in the third quarter of 2015, subject to closing conditions including regulatory approvals.
Pierre-Yves Lesaicherre
Following the transaction, the new company will carry forth under the name Lumileds, led by CEO Pierre-Yves Lesaicherre. Philips’ Lighting Solutions business will remain an important customer of Lumileds and will continue the existing innovation and supply partnership.
Go Scale Capital is a new growth stage fund sponsored by GSR Ventures and Oak Investment Partners. The consortium partners are Asia Pacific Resource Development, Nanchang Industrial Group and GSR Capital. With offices in Beijing, Hong Kong, and California, the fund’s goal is to scale up investments in China for global markets.