Dutch electronics giant Philips Tuesday announced that it is to break itself up by creating two companies focusing on Health tech and lighting solutions.
With 2013 sales of EUR 15 billion for Philips’ HealthTech businesses and EUR seven billion for the Lighting solutions businesses , each company has the scale to fully leverage Philips’ heritage of more than 120 years of innovation, said the company in a statement.
“I do appreciate the magnitude of the decision we are taking, but the time is right to take the next strategic step for Philips, as we continue on our transformation,” said Frans van Houten, Chief Executive Officer of Royal Philips.
The Lighting solutions business, already the global leader in lighting and serving a growing market, is estimated to exceed EUR 60 billion, it noted.
The new operating structure will bring savings of EUR 100 million in 2015 and further EUR 200 million in 2016 to Phillips, it estimated.
Source : KUNA Kuwait News agency
