Philips to Split Company, Create Separate HealthTech Business
Royal Philips said Tuesday that it will break its company in two units, creating one that combines the company’s existing healthcare and consumer lifestyle businesses and another that focuses on lighting solutions. The new HealthTech business had sales of $19 billion in 2013, the company said.
The restructuring is expected to save about $129 million in 2015 and another $257.7 million in 2016, Philips said. The Dutch company will incur about $64.4 million in additional annual restructuring charges beginning this year, and lasting until 2016, it added.
Philips said its HealthTech business hopes to capitalize on growing markets in healthy living and prevention, diagnosis, treatment, recovery and home care, spurred by an increase in consumers who want to proactively monitor and manage their health, and increasing pressures on the healthcare system to create and deliver better and affordable care.
The HealthTech businesses already is a market leader in oral healthcare, healthcare informatics, ultrasound diagnostics, cardiac care and home healthcare, Philips said, adding that it serves a total market that exceed $128 billion. — Kellen Owings
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