日本経済新聞　2006/8/5

フィリップス社長　医療機器、積極買収へ　半導体事業の売却資金で

　欧州総合電機大手のフィリップス(オランダ)のジェラルド・クライスターリー社長は４日、日本経済新聞記者に半導体事業の売却で得る６４億ユーロ(約９４００億円)を活用して医療機器事業などで企業買収を一段と加速する方針を明らかにした。「日本には(医療機器などで)競争力のある企業が多く、合弁や買収もありうる」と語った。同社は半導体から事実上撤退することで総合電機の看板を降ろし、成長分野に事業領域を絞り込む。
　フィリップスは同事業を米コールバーグ・クラビス・ロバーツ(KKR)など投資ファンド３社に売却する。同社長は「世界の複数の半導体大手とも交渉したが、結局は買収額などの条件から投資ファンドを選んだ」と説明した。年末までに本体から切り離して設立する半導体新会社はKKRなど投資ファンド３社が８０．１%を持つ。フィリップス側が継続所有する１９．９%の株式については「すぐに売る計画はない」という。
　半導体事業はフィリップスの総売上高の２割を占める。クライスターリー社長は「２００１年の社長就任から今回の売却は最も難しい決断」としながらも、「我々は伝統的な総合電機会社ではなくなる。健康医療や(照明など)ライフスタイルの２分野への資源集中投下で、高い収益成長を見込める」と述べた。
　フィリップスは過去１年間で、世界大手３社の一角である医療機器と世界首位の照明を中心に総額３５億ユーロ(約５１００億円)強の買収を実施。「売却益は今後の買収の原資」(同社長)になる。

2006/8/3 Philips

Philips to sell majority stake in semiconductors business to private equity consortium KKR, Silver Lake and Alpinvest
http://www.newscenter.philips.com/About/News/article-15486.html

Royal Philips Electronics announced today that the company has signed an agreement with Kohlberg Kravis Roberts & Co. (KKR), Silver Lake Partners and AlpInvest Partners NV (together referred to as “the consortium”) through which the consortium will acquire an 80.1% stake in Philips’ Semiconductors business, with Philips retaining a 19.9% stake in this business. The transaction will put the enterprise value for Philips’ Semiconductors business at approximately EUR 8.3 billion - consisting of EUR 3.4 billion purchasing price, EUR 4.0 billion for debt and other liabilities, and EUR 0.9 billion for Philips’ remaining stake. Philips estimates it will receive cash proceeds after tax and transaction related costs of approximately EUR 6.4 billion. The transaction is expected to close in the fourth quarter of 2006, subject to closing conditions, including governmental and regulatory approvals.

2006/8/3 Philips

Philips to complete its transformation from a cyclical technology company to a healthcare and lifestyle company built around a strong brand
http://www.newscenter.philips.com/About/News/article-15487.html

・Philips to return approximately EUR 4 billion to shareholders through dividends and share repurchase.
・Company increases its focus on growth in Healthcare and Lifestyle sectors.

Royal Philips Electronics announced its intent for capital allocation following the divestment of an 80.1% majority share in its Semiconductor unit. The transaction, announced separately today, values this business at around EUR 8.3 billion.

Proceeds from the sale, after tax and transaction-related costs, will total approximately EUR 6.4 billion. Philips will return a total of EUR 4 billion to shareholders by the end of 2007 through a combination of dividends and share repurchases, including the EUR 1.5 billion share repurchase program already announced on July 17, 2006.

The company reiterated its strategy to re-invest in additional opportunities for high-margin growth, both organically and through acquisitions. In the last 12 months Philips has announced the investment of EUR 3.5 billion in eight acquisitions (some yet to be completed), predominantly in Medical Systems, Lighting and Consumer Health and Wellness. These have brought almost EUR 1 billion in new revenue and over 5,000 employees into the group. The company noted that the earlier acquisitions were performing in line with, or better than, expectations. R&D investment in targeted areas such as Lighting and Domestic Appliances has been increased, in order to stimulate organic growth. Philips also re-confirmed its intent to exit from its participations in LG.Philips LCD and TSMC (* Taiwan Semiconductor Manufacturing Co. Ltd) in a responsible manner. In addition, Philips will continue to improve its cost structure by simplifying the organization and its ways of working.

“With this transaction we have now practically completed our shift towards more stable, cash generative businesses and away from the earnings volatility associated with cyclical industries like Components and Semiconductors, a journey we started in 2002,” said Gerard Kleisterlee, President and CEO of Philips.

“We close the chapter of being a traditional, vertically integrated electronics company - which is why, going forward, we would like to be known just as Royal Philips. This emphasizes the shift in our focus to a company built around a brand with the promise of “sense and simplicity” and with a focus on Healthcare and Lifestyle,” Kleisterlee said.

Kleisterlee explained that Philips was now a much simpler company, committed to improving the quality of peoples’ lives through meaningful innovation. He said resources would be focused on capturing value from some of the most important global economic, social and demographic trends. Notable among these were the trend for better healthcare and more well-being, the need to provide energy efficient solutions (e.g. in lighting) and the desire for rewarding consumer lifestyle experiences.

All these elements, together with the Semiconductors transaction will contribute to redefining Philips as a core value holding stock, in contrast with the historic perception of an electronics stock exposed to the volatile technology sector.

2006/6/15 Philips

Philips to acquire Intermagnetics, the world's leading MRI components and accessories manufacturer
http://www.newscenter.philips.com/About/News/press/article-15447.html

・Strategic acquisition to build world leading Magnetic Resonance Imaging (MRI) solutions with extended product portfolio, accelerated time-to-market and increased efficiency

Royal Philips Electronics today announced it has signed a definitive agreement with Intermagnetics General Corporation (“Intermagnetics”) under which Philips will acquire Intermagnetics for USD 27.50 per share or a total equity value of approximately USD 1.3 billion (EUR 1 billion) to be paid in cash upon completion. The Board of Directors of Intermagnetics has unanimously approved the proposed transaction. Completion of the transaction is subject to regulatory approval, to the terms and conditions of the merger agreement and to the approval of Intermagnetics’ shareholders.

Intermagnetics develops, manufactures and markets high-field superconducting magnets used in Magnetic Resonance Imaging (MRI) systems and is viewed as the technological innovator in this market. Intermagnetics also provides specialized MRI compatible patient monitoring devices and Radio Frequency (RF) coils that are predominantly supplied to hospitals.

The acquisition of Intermagnetics will strengthen Philips’ position in the key market of Magnetic Resonance Imaging. It will allow Philips to significantly rationalize its supply chain, to enhance its competitive position and to participate in the fast growing market for RF coils.

Philips anticipates the transaction to be accretive to its operating margin towards the end of 2007. There will be a one-time charge of approximately EUR 85 million related to in-process R&D expenses, integration of supply chain and various purchase accounting items, taken in the latter half of 2006. For the last four quarters ended February 26, 2006, Intermagnetics’ revenues were USD 304 million.

“Through this acquisition, we will greatly strengthen the overall performance and innovation capability of our MRI business”, said Jouko Karvinen, member of the Philips Board of Management and CEO of Medical Systems. “In the short term, we expect to gain equipment market share and to grow the installed base by expanding our product offerings with an accelerated innovation rate and a lower cost supply chain. Intermagnetics’ leading positions in the high-growth and high-value markets of RF coils and MRI patient monitoring will enable us to build unique solutions for our customers,” he added. “In the longer term, we believe that MRI technology will become important in molecular imaging, therefore positioning us well for the future.”

Philips also recognizes the benefits offered by the breakthrough technology of SuperPower, Intermagnetics’ Energy Technology subsidiary, and will actively consider the most effective way to achieve its potential.

Glenn H. Epstein, Chairman and Chief Executive Officer of Intermagnetics General Corporation said: “Our Board of Directors unanimously feels that this is the logical next-stage for Intermagnetics. We will now be better positioned to align our core strengths in the design and manufacture of superconducting magnets, RF coils and MRI compatible patient monitors with Philips’ deep expertise in MRI system design and clinical applications. This is truly a unique opportunity where another clear winner is the MRI business in general.”

Intermagnetics employs approximately 1150 people. Its headquarters in Latham, New York will become the global headquarters of Philips’ enlarged Magnetic Resonance business. Upon completion of the acquisition, Glenn H. Epstein will joinPhilips to lead the MRI business and the integration process. He will report to Steve Rusckowski, CEO of Philips Medical Imaging Systems.

Magnetic Resonance Imaging is one of the key imaging technologies in radiology departments in hospitals. In 2005, total MRI market was approximately EUR 5 billion, and consisted of MRI systems, services and accessories (such as RF coils). Over the past 10 years, the number of MRI procedures grew on average by 10 percent per year. This has been driven by an increasing number of diagnostic applications. Magnetic resonance imaging is radiation free, and is the preferred technique for high-resolution imaging of the brain, spine, abdomen, breast, prostate, blood vessels, and of all joints in the body.

2006/5/23 Philips

Philips to acquire mother & baby care products company, Avent Holdings
http://www.newscenter.philips.com/about/news/press/article-15403.html

・Deal brings together AVENT - a leader in baby care, with Philips - a leader in electronics
・Complementary premium brands, sales channels and geographic scope expected to fuel future growth
・Move further expands Philips’ presence in consumer health & wellness

2006/4/27 Philips

Philips completes acquisition of Witt biomedical corporation
http://www.newscenter.philips.com/about/news/press/article-15375.html

Philips announced today that it has completed its acquisition of Witt Biomedical Corporation, the largest independent supplier of hemodynamic monitoring and clinical reporting systems used in cardiology catheterization laboratories (Cath Labs). Under the terms of the agreement, which was announced on March 8, 2006, Philips acquired Witt Biomedical for USD 165 million. As a result of the transaction, Witt Biomedical will be financially consolidated with immediate effect within the Cardio/Vascular X-Ray business of Philips’ Medical Systems division.