Philips is going to sharpen strategic focus by establishing two market-leading companies in Lighting solutions and in HealthTech, combining Healthcare and Consumer Lifestyle.
Philips today announces the next strategic step to capitalize on fundamental market changes, by creating two market-leading companies focused on the HealthTech and Lighting solutions opportunities. Both companies will continue to benefit from leveraging the Philips brand.
‘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.
In relation to the company’s strategic repositioning, Philips will start the process to transition its Lighting solutions business into a separate legal structure and consider various options for alternative ownership structures with direct access to capital markets. More information on this will follow in the course of 2015.
Each company will have a dedicated, focused and lean management structure. The new operating structure enables additional cost savings resulting in 100 million Euros additional savings in 2015 and further 200 million Euros in 2016.
Source: Philips – Photo: Studio040