Philips Splits from Lighting Division

Philips "gives independence" to the Lighting division as part of a restructuring effort also bringing together the company's Healthcare and Consumer Lifestyle businesses into a single unit.

Philips lightingThus the Lighting division, which is worth around €7 billion, is now essentially a separate entity, if one leveraging from the Philips brand. The decision follows the recently announced plan to combine the Philips Lumileds (LED components) and automotive lighting businesses into a stand-alone lighting components company.

"G]iving independence to our Lighting solutions business will better enable it to expand its global leadership position and venture into adjacent market opportunities," Philips CEO Francis van Houten says.

Philips will also be looking into "various options for alternative ownership structures" for the lighting division. Or, in simpler language, a potential sale.

Meanwhile the combination of Philips' Healthcare and Consumer Lifestyle businesses will converge professional health care with consumer end-markets with health and medical CE offerings, a market the company estimates is worth around €100 billion.

The 123-year old Dutch company has been undergoing a revamp over the past few years, shedding its iconic TV, stereo and DVD, and semiconductor operations in the name of a more profitable company.

Go Philips to Sharpen Strategic Focus by Establishing two Market-Leading Companies