Philips
(NYSE: PHG)
announced today that it will sell its Emergency Care business to a U.S.–based private equity firm.
Financial terms of the agreement with Bridgefield Capital were not immediately disclosed.
The deal includes a licensing agreement that allows the sold business to use the Philips brand for manufacturing, sales, and marketing of Emergency Care products globally for up to 15 years.
Ryan Landon, Philips’ Business Unit leader for Emergency Care, said in a LinkedIn post that he’s honored to lead the business into its next chapter with Bridgefield Capital — with a new name coming soon. He said the transaction is expected to close late this year. (The timing of such deals is subject to closing conditions and regulatory approvals.)
Part of Philips’ Connected Care segment, the Emergency Care business’ products include medtech for cardiac resuscitation, such as automated external defibrillators, and emergency care devices for professional and consumer applications.
“With Bridgefield’s support and building on our 40+ year legacy of growth and innovation in emergency medical technology, the Emergency Care business will continue passionately pursuing our mission of saving lives, lowering the cost of healthcare, and advancing the science of resuscitation while serving the public access AED, EMS, military, and hospital market segments,” Landon said.
In its own news release, Bridgefield Capital noted that the Emergency Care business operates in over 130 countries with a large installed base of more than 3 million automated external defibrillators and advanced life support (ALS) devices worldwide — all supported by a network of 480 global distribution partners.
“This business exemplifies everything we look for in an exceptional investment — industry leadership, innovation, and a proven ability to deliver life-saving solutions on a global scale. We are excited to support its next phase of growth as a focused, standalone entity,” said Joseph Mathews, managing director of Bridgefield Capital.
Philips continues a phase of refocusing
Philips, in its news release, described the sale as fitting in with its overall strategy to concentrate its resources where it can achieve more extensive scale and financial impact. The Dutch medtech company has been seeking to recover from a massive respiratory devices recall that has stretched for years.
The Emergency Care business had past troubles. In 2017, it was subject to a DOJ/FDA consent decree that prohibited it from producing and distributing AEDs over noncompliance with regulations. According to Philips’ most recent annual report, the FDA in 2020 determined that Philips had met the conditions required to resume manufacturing and distribution in the U.S. The consent decree, though, still remained in effect as of a year ago, with Emergency Care subject to annual assessments by an independent expert for several years.
