About 2 billion dollars! Lumileds "married" Appollo management fund

Royal PHILPS (12) today announced that the company signed an equity transfer agreement, the 80.1% stake sold to Lumileds Apollo (Appollo) some of the global fund management company of Affiliated Companies management, PHILPS LumiLEDs will retain the remaining 19.9% stake.

The transaction, Lumileds's business value of approximately $2 billion, including debt and debt type items. PHILPS is expected to receive cash gains, pre tax and transaction related costs of approximately $1 billion 500 million and participate in preferred stock. The transaction is expected to be completed in the first half of 2017, but subject to customary closing conditions, including access to regulatory approvals.

Frans van Houten, chief executive officer of Royal PHILPS company said: "through this transaction, we will complete an important stage of our portfolio transformation, I am pleased to find Lumileds right owner in Appollo's fund. According to our strategic focus on health technology, Lumileds has been operating as an independent company since early 2015. Because the Apollo management of the fund acquired a majority stake in Lumileds, and in collaboration with PHILPS, Lumileds will achieve further development and create a better value, establish its strong innovation pipeline, technology leadership and strong customer base. "

Apollo is a leading global alternative investment management company, the management of funds of up to $189 billion, covering the areas of private equity, credit and real estate funds, etc..

Apollo senior partner Robert Seminara said: we are very excited about the acquisition of Lumileds fund management. We look forward to working with PHILPS and Lumileds outstanding management team and staff, and bring Appollo resources to support the continued growth and innovation of the industry's leading business. "

Lumileds CEO Pierre-Yves Lesaicherre said: "I believe that with the Appollo management fund, Lumileds will focus on accelerating the innovation of its leading lighting components portfolio. With our strong R & D plan and intellectual property rights, we are ready to respond to the current and future needs of our customers. Lumileds will work closely with its industry partners and customers to capture growth opportunities in an exciting industry. "

Lumileds is a leading provider of lighting components for the general lighting, automotive and consumer electronics market, operating in more than and 30 countries, with approximately 9000 employees worldwide. 2015, Lumileds achieved sales of approximately $2 billion.

At the end of March last year, the Jinsha River group (GO Scale Capital) as the leading Chinese consortium announced approximately $3 billion 300 million in trading on the price of the acquisition of 80.1% stake in Lumileds, and at the end of October the media reported that the Committee on foreign investment in the United States (Committee on Foreign Investment in the United States, CFIUS) and Go Scale Capital for PHILPS the transaction, there are some unexpected problems.

That time, PHILPS said that the company's management will take a variety of reasonable ways to continue to negotiate with CFIUS in order to lift doubts. But PHILPS also does not mince words, can not determine whether the transaction can be successfully reached.

At the end of January this year, because CFIUS still have concerns about the whole trading, so PHILPS and Jinsha River both suspended trading.

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