(Adds CEO comments)
June 30 Dutch lighting and healthcare company
Philips will merge its Lumileds LED components and
Automotive lighting subsidiaries into a standalone unit to which
they will attempt to attract third-party capital, the company
The two businesses had combined sales of about 1.4 billion
euros ($1.9 billion) in 2013.
"Both our Lumileds and Automotive lighting businesses are
strong players in the lighting industry and ready to pursue more
growth and scale, independently of Philips Lighting," said
Philips CEO Frans van Houten in a statement on Monday.
"As a world-leading lighting components business, they will
have increased flexibility to attract additional investors to
accelerate growth," he said.
Philips said it would remain a shareholder and customer of
the new company and would continue to collaborate with it on
research and development.
The process of merging the two divisions into an integrated
business, which will be led by current Lumileds CEO Pierre-Yves
Lesaicherre, is expected to be completed in the first half of
2015 and to cost Philips some 30 million euros in the second
half of 2014.
(1 US dollar = 0.7345 euro)
(Reporting by Thomas Escritt; Editing by Christopher Cushing)