Philips To Sell Ceramics Units To Yageo Corp.
The Discrete Ceramics business line is a well-positioned, mid-sized player in multi-layer capacitors (CMCs) and chip resistors (R-SMDs), Philips says. These products are used in all areas of electronic equipment manufacturing. In 1999 the business line had annual sales of EUR 235 million (~$213 million) and expects a double-digit growth for this year.
The Ferrite Ceramics business line is a pioneer of the ferrite ceramics industry with a track record of almost 50 years. It designs, produces and sells soft ferrites for a wide range of applications in the electronics industries, and boasts annual sales of nearly EUR 100 million (~$91 million), the business line is well-positioned within the global industry.
Both business lines employ approximately 3,200 people within facilities in Germany, Spain, the Netherlands, Poland, Taiwan, Mexico, Hungary, Malaysia, United States and sales organizations all over the world. The proposed transaction encompasses virtually all activities and employees including senior management.
This intended divestment results from the strategy that Philips Components has previously announced. In a step by step approach, Philips Components has been putting focus on specific market segments that demand integrated digital solutions based on Philips’ key technologies. The divestment of Discrete and Ferrite Ceramics follows previous divestments, which have included hard ferrites in 1997 and conventional passive components in 1999.
Yageo Corp. was founded 23 years ago and supplies passive components to the computer, telecom and automotive industries. The company employs approximately 5.000 people all around the world. Philips and Yageo Corp. expect to close the proposed transaction later this year.