Philips Electronics to Sell Its Communication, Security and Imaging Business to Bosch
AMSTERDAM, The Netherlands and OTTOBRUNN, Germany-- Aug. 7, 2002--Royal Philips Electronics (AEX: PHI, NYSE: PHG) and Robert Bosch GmbH (Bosch), today announced a preliminary agreement regarding the sale of Philips' business unit Communication, Security & Imaging (CSI).
Completion of the transaction, which is subject to customary consultation procedures with trade unions and workers councils and clearance by the competition authorities, is expected to take place later this year. Financial details were not disclosed.
Philips CSI is headquartered in Eindhoven, the Netherlands, operating in 35 countries worldwide and employing approximately 1300 people, all of whom will transfer to Bosch. CSI designs, manufactures, sells and supports a broad range of professional communication and security products and systems including closed-circuit video surveillance (CCTV), congress and public address systems. CSI is profitable with sales of over EUR 300 million in 2001.
With the acquisition of Philips CSI, which will be placed within Bosch Sicherheitssysteme GmbH, Bosch strengthens its market position in systems and components for video surveillance, where it already employs 4200 people. This acquisition will also give Bosch access to international markets for security systems, especially in North America, South East Asia and China.
Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of $28.8 billion (EUR 32.3 billion) in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 184,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at www.philips.com/newscenter.
The Bosch Group, headquartered in Stuttgart, Germany, is a diversified, global enterprise serving customers in 130 countries in three business sectors: Automotive Technology - where the company is the world's second largest manufacturer -, Industrial Technology, as well as Consumer Goods and Building Technology. In 2001, Bosch worldwide sales were EUR 34 billion. The company has 221,000 employees.
News from Bosch is located at www.bosch-presse.de
Safe Harbor Statement
This document contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, levels of consumer and business spending in major economies, changes in consumer tastes and preferences, the levels of marketing and promotional expenditures by Philips and its competitors, raw materials and employee costs, changes in future exchange and interest rates (in particular, changes in the euro and the US dollar can materially effect results), tax rates and future business combinations, acquisitions or dispositions and the rate of technical changes. Market share estimates contained in this report are based on outside sources such as specialized research institutes, industry and dealer panels, etc. in combination with management estimates.