Philips 2006 Annual Report Download - page 50

Philips Annual Report 200650
During 2006, the Company completed six strategically-
aligned acquisitions, totaling EUR 2.5 billion, while
simultaneously divesting a majority stake in its
Semiconductors division as well as a number of other cyclical,
non-core activities, primarily within Corporate Investments.
In the healthcare sector four key acquisitions took place
during 2006, underlining the strategic objective to grow
in this sector.
In professional healthcare, the Company acquired
Witt Biomedical, the largest independent supplier
of hemodynamic monitoring and clinical reporting
systems used in cardiology catheterization laboratories.
This acquisition will position the Company as a leader
in the growing market for integrated Cath Lab solutions
in which cardiologists increasingly demand that Cath
Labs be fully integrated into a hospital’s IT infrastructure.
Hemodynamic monitors measure and monitor a patient’s
ECG, blood pressure and other vital signs associated
with a Cath Lab procedure.
In the key market of magnetic resonance imaging (MRI),
the Company acquired Intermagnetics, the world’s
leading MRI components and accessories manufacturer.
Intermagnetics develops, manufactures and markets high-
fi eld superconducting magnets used in MRI systems and
is viewed as the technological innovator in this market.
Through this acquisition, the Company expects to greatly
strengthen the overall performance and innovation
capability of its magnetic resonance imaging business.
Intermagnetics will be fully integrated into the Company’s
existing MR business.
In consumer healthcare, Philips acquired Lifeline Systems,
a leader in personal emergency response services. US-
based Lifeline Systems has a broad market presence in
the United States and Canada. It markets its services
through a network of more than 2,500 hospitals and
other healthcare providers and serves a subscriber base
of around 520,000 people. The Company believes that
the acquisition of Lifeline will strengthen the Company’s
position in the evolving home healthcare market. The
aging of the population and the expectation that seniors
as a percentage of the total population will double over
the next 25 years in Western Europe and the US, makes
the Company aim to become a global player in this market.
Also in the consumer healthcare area, the Company
acquired Avent, a leading provider of baby and infant
feeding products in the United Kingdom and the United
States, with sales in more than 60 countries. Through this
acquisition, the Company seeks to build on its leading
position in Europe in baby monitors to become a leading
provider of products in this market which is expected to
grow strongly in the next years driven by a higher spending
per baby in both developed and emerging markets.
In the professional lighting sector, the Company acquired
Bodine, a leading manufacturer of emergency lighting
applications. This acquisition will position Philips in
the niche emergency ballast market, while enabling it
to enter strategic new market segments involving
building networks.
In the fast-growing and high-margin area of electronics
peripherals and accessories, the Company acquired Power
Sentry, a market leader in the plug-in power surge
protector market in the US, which represents 80% of
the global market. Through this acquisition, the Company
aims to become a top three global player in the audio-
visual, PC and mobility accessory market, building on its
earlier acquisition of the US accessories supplier Gemini.
Acquisitions
6 Financial highlights 8 Message from the President 14 Our leadership 20 The Philips Group
- Acquisitions
- Other information