Philips Begins Talks With Potential Buyers of Domestic Appliances Unit

By Adria Calatayud

Koninklijke Philips NV said over the weekend that it has started talking to parties interested in buying its domestic-appliances unit, although it hasn't ruled out an initial public offering for the business.

The Dutch health-technology group launched in January a review of options for its domestic-appliances unit as part of its yearslong shift toward medical technology. The separation process is scheduled to be completed in the third quarter of 2021.

The company --which last Friday said it would acquire U.S. remote medical-technology company BioTelemetry Inc.-- said it has received interest for its appliances unit from strategic players in the industry and private-equity investors in Europe and China.

However, Philips said it keeps all options open, including a private sale and an IPO.

A Bloomberg article over the weekend indicated French private-equity group PAI Partners SAS and China's CDH Investments were preparing first-round bids for Philips' appliances unit, citing unnamed sources. Apollo Global Management Inc., Advent International Corp. and CVC Capital Partners Ltd. were also reported to have been studying the business.

PAI Partners, CVC, Apollo and Advent all declined to comment when contacted by Dow Jones Newswires. CDH didn't immediately respond to a request for comment.

Philips's domestic-appliances unit --which makes kitchen appliances, coffee makers, garment-care products and home-care appliances such as vacuum cleaners and air purifiers-- is headquartered in the Netherlands, has around 7,500 employees and generated sales of 2.3 billion euros ($2.82 billion) in 2019.

In October, Philips Chief Executive Frans van Houten said in a call with reporters that the business was doing well as it had benefited from a pick-up in consumer demand.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

December 21, 2020 07:00 ET (12:00 GMT)

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