AMSTERDAM (dpa-AFX) - Royal Philips (PHG) announced that it has signed an agreement to sell an 80.1% interest in Lumileds, a supplier of LED components and automotive lighting, to certain funds managed by affiliates of Apollo Global Management, LLC (APO). The transaction values Lumileds at an enterprise value of about US$2 billion, including debt and debt-like items.
As part of the agreement, Philips will retain its 19.9% interest in Lumileds for a minimum period of three years following completion of the transaction, subject to customary drag-along and tag-along conditions or an IPO.
Philips expects to receive cash proceeds, before tax and transaction-related costs, of approximately US$1.5 billion and participating preferred equity. The transaction is expected to be completed in the first half of 2017, subject to customary closing conditions, including the relevant regulatory approvals.
Lumileds is a supplier of lighting components to the general illumination, automotive and consumer electronics markets with operations in more than 30 countries and has approximately 9,000 employees worldwide. In 2015, Lumileds generated sales of approximately US$2 billion.
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