31 March 2015

Philips sells majority stake in LED components and Automotive lighting business

De Brauw has assisted Philips in reaching an agreement with a consortium led by GO Scale Capital through which the consortium will acquire an 80.1% interest in Philips’ combined LED components and Automotive lighting business.

The transaction values the business at an enterprise value of approximately USD 3.3 billion. Philips expects to receive cash proceeds, before tax and transaction-related costs, of approximately USD 2.8 billion and a deferred contingent payment of up to USD 100 million. Following the transaction, the new company will continue to operate under the name Lumileds. Philips’ Lighting Solutions business will remain an important customer for Lumileds, and both will continue the existing innovation and supply partnership.

GO Scale Capital is a new investment fund sponsored by GSR Ventures and Oak Investment Partners. The consortium partners are Asia Pacific Resource Development, Nanchang Industrial Group and GSR Capital. The GO Scale Capital team has deep technology expertise and a track record in scaling up disruptive technologies.

De Brauw has acted as lead counsel for Philips in many transactions, such as the divestment of its TV business to a joint venture with TPV; the divestment of its Lifestyle Entertainment business; the acquistion of Preethi in India; and the divestment of the High Tech Campus real estate in the Netherlands to private investors.

Team:
Arne Grimme (lead partner), Michael Schouten

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