Electronics giant plans for the ‘next century’
25 September, 2014, 12:00 am
DUTCH electronics giant Philips has said it is planning to split the company in two, separating its lighting business from its healthcare division.
Both companies will continue to be based in the Netherlands and use the Philips name, it said in a statement.
Philips has been streamlining its business by selling off underperforming parts of the business in recent years.
Chief executive Frans van Houten said the move was meant to prepare the company for “the next century”.
“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. Both companies will be able to make the appropriate investments to boost growth and drive profitability, ultimately generating significantly more value for our customers, employees and shareholders.”
Philips began as a lighting company back in 1891.