Tuesday, November 28, 2006
Amsterdam, The Netherlands and Tokyo, Japan – Royal Philips Electronics (NYSE:PHG, AEX:PHI) and D&M Holdings Inc. (TSE I:6735) of Japan today announced Philips will sell its Philips Sound Solutions (PSS) business unit to D&M. As part of the transaction, all sites and activities of PSS will be transferred to D&M. The transaction, which is expected to close in the fourth quarter of 2006, will be settled in cash. No further financial details about the transaction have been disclosed.
Philips Sound Solutions is an OEM supplier of speaker systems, primarily to the automotive industry. As an OEM component developer and manufacturer, PSS is considered a non-core activity for Philips, forming part of Philips Corporate Investments. This transaction represents another step Philips is taking to focus on its healthcare, lifestyle and technology activities supported by the strength of the Philips brand.
D&M intends to accelerate its OEM business in this industry by building on the automotive assets and relationships of PSS. The transaction will also provide D&M with technologies and know-how that will enable D&M to introduce sound applications with new technology.
Headquartered in Dendermonde, Belgium, PSS has development centers in Belgium, China and India, and production facilities in Belgium, Hungary, Ukraine, China and India. In 2005, PSS had revenues of approximately EUR 120 million.
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