Theo van Deursen, CEO of Philips Lighting described this as a "strategic move" for Philips to "confirm our leadership position in solid state lighting, in particular for the home where energy-efficient LED solutions and creating atmospheres will be the name of the game."
PLI has 24 sales organizations and exports to 70 countries, which will extend Philips reach into the home lighting market. "PLI entrepreneurship, design innovation and 25% renewal rate of its products each year made them a true market-driven company, responding to market and consumer lifestyle trends," said van Deursen.
Subject to receipt of regulatory approval, Philips will acquire PLI from CVC Capital Partners, a private equity investment company, for approximately EUR 590 million in cash. The transaction is expected to close in the first quarter 2007.
PLI develops, manufactures and markets a wide portfolio of more than 10,000 distinct home lighting luminaire products currently mainly for the European market.
"Through Philips' broad expertise in lighting, its wide capabilities in LEDs, and extensive global reach and resources, we will be able to further expand our home lighting business," says Jules Noten, CEO of PLI. "We look forward to becoming a global player and industry shaper in the transition towards LED applications."
"This acquisition, and PLI's strong record of growth and margins, perfectly fits in our ambition to shape the lighting industry with a growth of 6%, while maintaining a margin around 12%," added van Deursen.
Founded in 1926, PLI currently employs approximately 4700 people with headquarters in Kontich, Belgium, and manufacturing operations in China, Hungary and Belgium.