Philips is to sell WOOX Innovations, its Audio, Video, Multimedia and Accessories business, to Gibson Brands, a global music and lifestyle company. Under the terms, Gibson Brands will pay $135 million and a brand licence fee, relating to a licence agreement for an initial period of 7 years. The deal is expected to close in the second half of 2014, subject to customary conditions, including regulatory filings and works council procedures.
Gibson Brands, based in Nashville, USA, has most recently invested in audio brands including Onkyo and TEAC as part of its ambition to become the global leader in music and sound. This transaction will leverage Gibson Brands’ strong market presence in the U.S. and Japan, and WOOX Innovations’ market strength with Philips-branded audio and home entertainment products in Europe, China, Latin America and other growth geographies.
“With this transaction, we are taking another important step in Philips’ transformation to become a leading technology company in health and well-being,” said Philips Chief Executive Officer Frans van Houten. “Philips and Gibson Brands have played significant roles in shaping the home entertainment and music industries and with this agreement the Philips brand will continue to be associated with innovative products in this space.”