Philips builds support with €2.5bn Exor investment
A major Dutch diversified holding company has spent approximately €2.5bn buying 15% of Royal Philips.
The deal by Exor, the investment arm of the Agnelli family, will see a seat on the Philips Supervisory Board and is capped at 20%. The shares come from the open market and an financial institution, rather than an additional capital raise.
The discussions started as part of Exor’s move stated interest in increasing its presence in the healthcare and technology sectors. The company is said to be supportive of the recent strategy despite the recent financial problems and a major US recall.
“The path of change taken by Philips in recent years has created a company that combines two areas – healthcare and technology – to which we are committed. Our discussions have confirmed the strong and positive alignment between our long-term, supportive approach to our companies and Philips’ ambitious plans under the chairmanship of Feike Sijbesma and the executive team led by Roy Jakobs,” said John Elkann, Exor’s CEO.
The company has investments in Ferrari and Stellantis (via Fiat Chrysler Automobiles (FCA)), tractor maker CNH Industrial as well as Juventus Football Club.
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“Exor’s investment, their long-term outlook and increased focus on healthcare and technology, fit well with our strategy and substantial value creation potential,” said Roy Jakobs, CEO of Royal Philips. “With our market leadership positions and people-centric innovation capabilities, Philips is well positioned to deliver on our purpose to improve the health and well-being of people, creating value for all stakeholders.”
“We welcome Exor as a long-term investor,” said Feike Sijbesma, Chairman of the Supervisory Board of Royal Philips. “They have a successful track record and clear strategy to grow and develop in healthcare and technology. Exor’s substantial investment underlines their confidence in Philips’ transformation into a healthcare technology company and its growth and value potential.”
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