Philips announced on Jan. 28 that it has begun to “disentangle” its domestic appliances segment from the rest of the company in hopes of selling off the segment to focus solely on health-related technologies.
The company expects to complete the process of creating a separate legal structure for the domestic appliances business in the next 12 to 18 months. The segment garnered approximately $2.53 billion in sales in 2019, with products including kitchen, garment care and home care appliances.
“We have significantly improved the performance of the domestic appliances business over the years, which has made a very important contribution to Philips, however this business is not a strategic fit for our future as a health technology leader,” Frans van Houten, Philips CEO, said in the announcement. “We are committed to finding a good home for this business to continue to thrive and grow over time, as we expand and invest in our consumer health and professional healthcare-related businesses.”
Philips’ health-related products range from consumer technology, such as hearing aids and sleep apnea therapies, to professional solutions spanning diagnostic imaging, image-guided therapy, patient monitoring and health informatics.
The company began shifting its focus from household appliances to health technology in 2017, when Philips spent an estimated $2.8 billion on acquisitions in the space, adding several health IT companies to its portfolio. These buying trends have continued in the years since, alongside Philips’ development of new professional and consumer health products, investments in health tech startups and partnerships with existing industry giants.
More articles on health IT:
Illinois health system alerts 2,700 patients of security incident with third party vendor
Flaw in LabCorp website exposes thousands of medical documents
What the .org sale could mean for healthcare
© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.