Dutch electrical equipment giant Philips says it has now transformed itself into a healthcare and lifestyle technology business after announcing the sale of its semiconductor business for €8.3 billion.
'I see it as a defining moment in the more than 150-year history of the company,' said Philips chairman Gerard Kleisterlee.
Philips announced late on Thursday that it had agreed to sell 80% of its semiconductor business to a consortium comprising Kohlberg Kravis Roberts, Silver Lake Partners and AlpInvest Partners in a leveraged buy out.
The deal will net the Dutch group €6.4 billion. Kleisterlee said €4 billion would be returned to shareholders through share buy-back programmes and dividends. The rest of the money would be used for investment and acquisitions.
