Philips sells home appliances division to Chinese investor

Philips sells its home appliances division to a Chinese investment company. Hillhouse Capital will pay a total of 4.4 billion euros for the part that makes Senseo’s and Airfryers.

air fryer

It concerns the Domestic Appliances department, which makes household appliances such as coffee makers and vacuum cleaners, Philips writes. There are about 7,000 employees in that division. Philips sells the division to Hillhouse Capital, a Chinese investment company.

Hillhouse pays 3.7 billion euros for the division. The remaining 700 million euros will be paid in installments over the next fifteen years for the use of the Philips brand name. The company expects to be left with 3 billion euros from the sale after all taxes.

Philips has been in the process of divesting various business units for years. In the long term, the company wants to focus mainly on health technologies. For example, the audiovisual department was sold years ago, and since 2019 also the shares in Signify, which makes Philips lighting. The sale of the household division is one of the largest of Philips to date. The acquisition is expected to be completed in the third quarter of this year.