Dec 12, 2016: Apollo Global Management, a leading global alternative investment manager, has acquired 80.1% interest in Lumileds, a leading manufacturer of LED components and automotive lighting.
Royal Philips, the parent company of Lumileds, has signed the agreement, and will retain the remaining 19.9% interest in Lumileds for a minimum period of three years, after completing the transaction, subject to the conditions of the IPO.
Apollo Global Management bought Lumileds’ share at US$2 billion, including debt and debt-like items. Philips will receive cash proceeds, before tax and transaction-related costs, of about US$ 1.5 billion.
The transaction is likely to be completed in the next six months, “subject to customary closing conditions, including the relevant regulatory approvals.”
Lumileds operates in more than 30 countries, and about 9,000 employees worldwide work for the company. In 2015, Lumileds generated sales revenue of about US$ 2 billion.
Frans van Houten, CEO, Royal Philips, said that with this transaction, Royal Philips will complete an important transformation phase of the company’s portfolio.
Lumileds has been operating as a standalone company within Philips since 2015. “After the acquisition, Lumileds is now well-positioned for further growth and value creation,” he added.
Apollo has successful track record of acquiring and growing companies in partnership models with former parent companies.
Robert Seminara, Senior Partner, Apollo, said, “We are excited about the opportunity for our managed funds to acquire Lumileds, and look forward to partner with Philips. We would bring in Apollo’s resources to support the continued growth and innovation of this leading company.”
Speaking about the takeover, Pierre-Yves Lesaicherre, CEO, Lumileds, said, that together with the Apollo managed funds, Lumileds will focus more on innovations in its lighting components’ product portfolio.