philips to split into two companies as part of overhaul - health care appliances

Philips, the Dutch electronics giant, said on Tuesday it plans to split itself into two companies: one focusing on health care and technology and the other on lighting.
The announcement is the latest move by Philips to reshape itself.
Philips announced on June that it plans to split some of its lighting business-LED components and automotive lighting division-into its own company.
On Tuesday, Philips said it would combine health care with consumer lifestyle businesses, set up a company and label it as health technology.
Philips said it would start turning the lighting business into an independent company.
Philips said it would explore several ownership options for the lighting department to get the Booth
Only companies can enter the capital market directly.
I do appreciate the size of the decision we are making, but as we continue to transform, it's time to take the next strategic step for Philips, Philips CEO said at a press conference.
Both companies will be able to make appropriate investments to boost growth and improve profitability, ultimately creating greater value for our customers, employees and shareholders.
Philips chief executive Van Houten said the holding structure was no longer necessary and splitting into separate businesses would free up cash for new investments.
Philips will Host Investor Day in London on Tuesday.
As a result of these changes, Philips expects to achieve approximately € 0. 3 billion, or approximately $0. 385 billion in cost savings, by 2016, but will also incur additional restructuring costs of approximately EUR.
Amsterdam-based Philips has been looking to focus its business on growth in recent years, including selling some businesses.
Before the announcement on Tuesday, the company built around three lines of business: healthcare, consumer lifestyles, and lighting.
The HealthTech business is expected to take advantage of the growing integration between the healthcare and consumer sectors, where consumers use technology to proactively monitor and manage their health.
The healthcare business revolves around four areas: imaging systems, patient care information systems, family health care, and medical transformation services, and last year a new department was established, to help improve the operational and financial performance of hospitals and health systems.
The consumer lifestyle division focuses on home technology products such as beard trimmer and household appliances.
It has three business areas: health and health, personal care and home appliances.
In 2013, the total sales of health care and consumer lifestyle businesses were around £ 14.
2 billion, 5480 billion people.
The two units will form a new medical and technical department.
The new lighting business will include three departments from providing traditional bulbs to completing the lighting system.
The company is expected to provide more information on these changes in 2015.
Philips still plans to split its car lighting and LED component business separately, which accounted for about 15% of its sales in 2013.
The divestiture of these lines of business is expected to be completed in the first half of 2015.
Overall, all five lighting businesses employ about 47,000 people worldwide, with sales of £ 8.
2013 4 billion.