3 April, 2015—Lighting giant Royal Philips (Amsterdam, the Netherlands), announced this week an agreement to sell its combined light-emitting diode (LED) and automotive lighting business to Chinese investment firm GO Scale Capital, which will obtain an 80.1 percent stake. Philips will retain the remaining 19.9 percent interest. The enterprise value of the business is estimated to be US$3.3 billion. The cash transaction of approximately US$2.8 billion includes an up to US$100 million deferred contingent payment. The Lumileds business reportedly generated sales of approximately US$2 billion in 2014. The transaction is scheduled for completion in the third quarter of 2015.
The new company will retain the name Lumileds, and continue under the current CEO Pierre-Yves Lesaicherre. The transaction includes a 34 percent interest in the United States operations of Lumileds in San Jose, Calif., USA.