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.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 126,000 employees in more than 60 countries worldwide. With sales of EUR 30.4 billion in 2005, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics.
About D&M Holdings Inc.
D&M Holdings Inc. is based in Kawasaki, Japan and owns the Denon, Marantz, McIntosh Laboratory, Boston Acoustics, Snell Acoustics, D&M Professional, Denon DJ, ReplayTV and Escient brands. Denon, Marantz, McIntosh and D&M Professional are global industry leaders in the specialist home theater, audio/video consumer electronics or professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. Boston Acoustics, with its signature The Boston Sound, is a leader in premium loudspeakers for home and audio markets. Snell is a super premium speaker brand. The ReplayTV and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.