Electronics firm Philips is set to exit the home entertainment sector, selling its Audio, Visual, Multimedia and Accessories divisions to Funai Electrics of Japan for over €150m, plus licence fees.
The company now plans to focus on health and well-being.
Philips chief executive Frans van Houten commented: "Today we announced that we have signed an agreement with Funai to transfer our Philips Audio, Video, Multimedia and Accessories businesses.
"This transaction will leverage Philips’ strong brand, strength in innovation, and leadership position in these businesses, with Funai’s strong presence in America and Japan, and its supply and manufacturing expertise. I am confident the deal will give this business a great future, with continuity for our customers. We have taken an important step in transforming Philips into the leading technology company in health and well-being.
"While we have made significant progress in 2012, there is still much more to be done to unlock and deliver the full potential of Philips. Going forward, by executing on our Accelerate! program, we will continue to relentlessly drive operational excellence and invest in innovation and sales development to deliver profitability and growth.
"The challenging economic environment in 2012, notably in Europe and United States, has impacted our order book, and hence we expect our sales in 2013 to start slow and pick up in the second half of the year. We remain confident in our ability to further improve our operational and financial performance, enabling us to achieve our 2013 financial targets”.
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