Mar 27, 2001 Philips Lighting B.V., a subsidiary of Royal Philips Electronics (AEX: PHI, NYSE: PHG) announced today that it has signed a Letter of Intent with AXA, the Mexican multi-business conglomerate, with respect to the acquisition of the fluorescent lighting ballast operation of Lumisistemas (Mexico) and all lighting ballast activities of Helfont (Brazil). The transaction is subject to due diligence and customary regulatory approvals.
Lumisistemas and Helfont are leading companies in their respective markets. They have manufacturing operations in Mexico and Brazil, employ a total of 1600 people, and have combined sales of approximately 80 mln USD. Through this acquisition Philips Lighting will be better positioned to participate in these growth markets.
Peter van Strijp, President & CEO of Philips Lighting's Business Group Lighting Electronics & Gear said: "We are very pleased to have this opportunity to enhance our participation in these markets. The two businesses are highly compatible with Philips Lighting's. There is a substantial potential for commercial and industrial synergies." Eugenio Garza, Chairman and CEO of AXA said: "The divestiture of our ballast business responds to the strategic decision of AXA to concentrate on its larger businesses."
For the Mexican market Philips and AXA have agreed to a multi-year distribution agreement with Eletec (an electrical distribution chain within AXA) as part of the transaction. With the acquisition of Helfont, Philips Lighting takes a next step towards further enlargement of its industrial base in Brazil. A first step in this direction was taken with the completion earlier this year of a new lighting ballast factory in Varginha, Minas Gerais, to supply both the local and export markets.
