Philips to take over iPod peripherals maker DLO
(Adds financial details, DLO product details)
AMSTERDAM, April 13 (Reuters) - Dutch Philips Electronics (PHG.AS)(PHG.N) said on Friday it will take over United States-based Digital Lifestyle Outfitters (DLO), a producer of peripherals for MP3 players such as Apple's (AAPL.O) iPod.
No financial details were disclosed of the transaction which is expected to close in the second quarter of 2007.
DLO had sales of about $100 million in 2006, mainly in the United States, and is expected to make a positive contribution to operating margins in Philips' peripherals and accessories business unit, Philips said.
That business, part of its consumer electronics (CE) business which generates around 40 percent of Philips' total revenues, had sales of around 800 million euros ($1.08 billion) in 2006 with an operating profit margin of "high single digits", well above the 3.9 percent for CE as a whole, it said.
Philips is the world's biggest lighting maker, a top three hospital equipment maker and Europe's biggest consumer electronics producer. It is also the biggest electrical shavers maker with its domestic appliances business.
Following the sale of non-core activities, Philips has billions of euros available for acquisitions in its four remaining core businesses. Within consumer electronics it has more than doubled revenues of the peripherals activities between 2003 and 2006 through organic growth and acquisitions.
Most of DLO's products, such as docking stations, car chargers and radio transmitters, are designed for iPod, a rival to Philips' own MP3 players.
Philips played down the rivalry and said products were "designed for all (MP3) players in the market".
((Reporting by Lucas van Grinsven, editing by Sue Thomas;
European Technology Correspondent
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($1=.7434 Euro) Keywords: PHILIPS/DLO
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