Philips to Split off Lighting Unit
Royal Philips NV has announced plans to separate its lighting unit so that the company can focus on more profitable health care equipment and consumer goods. Philips is the world’s largest lighting company.
Media reports indicate that its lighting operations will become a standalone company with 7 billion euros in revenue, as Philips considers ownership options, including an initial public offering. Siemens AG made a similar move a year ago. “Giving independence to our lighting solutions business will better enable it to expand its global leadership position and venture into adjacent market opportunities,” said Philips CEO Frans Van Houten in a telephone news conference. The company employs about 112,000 people worldwide.
These shifts are attributed to stiff competition, an industry move towards LEDs, which are more energy efficient than traditional bulbs, and growing demand for more complex lighting systems and services.
