THE WHAT? Philips has announced that it is ‘reviewing options’ for its Domestic Appliances business and will begin the process of creating a separate legal structure for the unit with a view to a future sale.
THE DETAILS The process is expected to be complete within the next 12 to 18 months – the division bought in sales of €2.3 billion last year, spanning kitchen, coffee and garment and home care appliances.
“We have significantly improved the performance of the Domestic Appliances business over the years, which has made a very important contribution to Philips, however this business is not a strategic fit for our future as a health technology leader,” said Frans van Houten, CEO of Royal Philips. “We are committed to finding a good home for this business to continue to thrive and grow over time, as we expand and invest in our consumer health and professional healthcare related businesses.”
THE WHY? Philips intends to focus on its health and wellbeing operations. As van Houten explained, the company will continue to innovate and invest in its oral care, personal care and mother & child care devices.