Philips divests its Domestic Appliances business to Hillhouse Capital in a total deal value of ~€4.4B

Philips is again selling a part

  • Philips (NYSE:PHG) has decided to sell its Domestic Appliances business to Hillhouse Capital at an enterprise value of ~€3.7B.
  • Upon completion of the transaction in 3Q21, Philips expects to receive cash proceeds after tax and transaction-related costs of ~€3B.
  • Concurrently, Philips and Domestic Appliances will enter into an exclusive brand license agreement to use the Philips brand and certain of Philips ' other domestic appliances brands for manufacturing, sales, and marketing of Domestic Appliances products globally for a period of 15 years for an annual payment of ~€0.7B resulting in a total deal value of ~€4.4B.
  • The Domestic Appliances business with €2.2B sales in 2020, will be presented as a discontinued operation in Philips ' financial statements as of 1Q21.
  • Frans van Houten, CEO of Philips said, 'This transaction concludes our major divestments. Going forward, our focus is on extending our leadership in health technology and continuing our transformation into a solutions company supporting professional healthcare customers achieve the Quadruple Aim and consumers with their personal health."

    Over the current book year the company from Amsterdam's total revenue could be around 19.63 billion euros (consensus estimates). This is slightly more than 2020's revenue of 19.54 billion euros.

    Historical revenues and results Philips plus estimates 2020

    fundamenteel onderzoek

    The analysts expect for 2021 a net profit of 1.81 billion euros. For this year the consensus of Philips 's result per share is a profit of 1.98 euros. The PE-ratio therefore is 24.83.

    Analysts expect a dividend of 92 cents per share. Thus the dividend yield equals 1.87 percent. The average dividend yield of the electronics companies is a low 1.16 percent.

    Most recent target prices around 54 euros

    Independent Research, UBS and Citigroup recently provided recommendations for the stock.

    Philips 's market capitalization is around 44.69 billion euros. The Philips stock was the past 12 months quite volatile. Since last April the stock is even 39 percent higher. This year the stock price moved between 34 and 49 euro.

    Historical stock prices Philips

    fundamental data philips

    On Thursday the stock closed at 49.16 euros.

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