Philips

Philips
CEO: François van Houten
Based: Amsterdam, The Netherlands
2014 sales: $8.9 billion 
2013 sales: $9.4 billion
Change: -6%

Royal Philips ($PHG), a conglomerate focused on health, consumer and lighting products, started to restructure itself in September. The company has sold off 80% of its LED and automotive lighting business for $2.8 billion. Its remaining lighting business is expected to have an IPO in the first half of 2016.

All that cash from lighting is expected to go back to invest in the core business, which is now dubbed HealthTech, that resulted from the ongoing restructure. Philips is in the process of sorting out precisely what its future priorities will be.

The company has announced a series of recent med tech deals and initiatives, the largest of which is the acquisition of catheter-based imaging company Volcano ($VLC) for $1.2 billion. Volcano was already troubled in its own right and facing stagnant recent revenues.

Wall Street punished Philips after it disclosed the HealthTech restructure. In fact, the company's shares have yet to recover back to that level from before the restructure disclosure, which was now more than 6 months ago.

Its existing Healthcare and Consumer Lifestyle businesses included ultrasound diagnostics, cardiac care, home healthcare and personal hygiene. Philips laid out its vision for HealthTech in a recent March shareholder letter.

"With its current businesses and new opportunities on the horizon, Royal Philips can address the entire health continuum in a way that we believe gives us a unique advantage over competitors and can respond to changing market demands," said the letter.

"A united HealthTech portfolio, enabled by a cloud-based digital health platform and big data analytics capabilities, will be uniquely positioned to capture the key opportunities in population health management, improved solutions for health systems and accountable care organizations, and coordinated care delivery across the health continuum," it concluded.

Most recently, Philips hired former Hologic CEO Robert Cascella to run its imaging business.

-- Stacy Lawrence (email | Twitter)

Philips
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