A consortium led by GO Scale Capital will acquire an 80.1 percent interest in Philips’ combined LED components and automotive lighting business, with Philips retaining the remaining 19.9 percent interest. The transaction values the businesses at about $3.3 billion. The deal is expected to be completed in the third quarter of 2015, subject to closing conditions, including customary regulatory approvals.
Following the transaction, the new company will continue 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 investment fund sponsored by GSR Ventures and Oak Investment Partners. The consortium partners are Asia Pacific Resource Development, Nanchang Industrial Group and GSR Capital. GO Scale Capital says its team has deep technology expertise and a track record in scaling up disruptive technologies.
Lumileds is a supplier of lighting components to the general illumination, automotive and consumer electronics markets with operations in more than 30 countries and with about 8,300 employees worldwide. In 2014, it generated sales of about $2 billion.
Following the separation of Lumileds, Philips Lighting will create two companies focused on HealthTech and Lighting Solutions. As part of that strategic repositioning, Philips will transition the Lighting Solutions business into a separate legal structure, and it is the current intention to effectuate the separation through an initial public offering, although other options will continue to be reviewed, according to the company.