Philips 2008 Annual Report Download - page 50

announced: Dixtal Biomédica e Tecnologia in Brazil;
Shenzhen Goldway in China; within India, Alpha X-Ray
Technologies was acquired while the intention to acquire
Meditronics was announced; and in an acquisition related
to the Medel acquisition, Philips acquired a strategically
important manufacturing facility in Guangdong, China
for nebulizer compressor systems.
Within Lighting, Philips completed the acquisition of
North American luminaires company Genlyte, a leader
in the North American construction luminaires market.
This has further solidifi ed Philips’ position as the global
leader in lighting, with touch-points across the entire
global value chain.
In 2008, acquisitions led to integration and purchase
accounting charges totaling EUR 146 million, of which
EUR 131 million impacted EBITA. Within the operating
sectors, Healthcare incurred charges totaling EUR 95
million, of which EUR 90 million impacted EBITA, and
Lighting incurred EUR 51 million of charges, EUR 41
million of which impacted EBITA.
In 2007, acquisitions led to integration and purchase
accounting charges totaling EUR 54 million, EUR 41
million of which impacted EBITA, primarily at Lighting
and Healthcare.
Divestments
In 2008, Philips also sold, or decided to sell, several
non-core business interests. These divestments included
the sale of the Set-Top Boxes and Connectivity Solutions
activities; the brand license agreement with respect to
the North America television, audio and video businesses;
the sale of Philips Speech Recognition Services (PSRS);
the divestment of High Tech Plastic – Optics; the sale
of Philips’ approximate 70% ownership stake in MedQuist;
and a brand licensing agreement, expected to close in
the fi rst half of 2009, with regard to the PC Monitors
and digital signage business.
In total, net gains from the sale of businesses amounted
to EUR 106 million in 2008. There were no signifi cant
net proceeds from the sale of businesses in 2007.
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Acquisitions and divestments
In 2008, Philips continued its journey to become
a health and well-being company by investing in high-
growth, high-margin businesses that are leaders in
their respective fi elds. In line with this vision, Philips
acquired, or announced the intention to acquire, 10
strategic companies during the year while divesting
several non-core, or unprofi table, business interests.
This further increased the proportion of overall sales
generated by businesses leading in their markets and
increased sales in emerging markets.
Acquisitions
Within Healthcare, we acquired nine notable companies.
In February, Philips acquired VISICU, a clinical IT system
maker which enables critical-care medical staff to actively
monitor patients in hospital intensive care units (ICUs)
from remote locations. In March, we acquired Respironics
in what is the company’s largest acquisition to date.
Respironics is a global leader in the treatment of
Obstructive Sleep Apnea (OSA), and its acquisition has
helped form a solid foundation for the Home Healthcare
Solutions business. Furthermore, TOMCAT and Medel
SpA were acquired later in 2008, complementing our
Healthcare IT and Home Healthcare Solutions businesses
respectively. Additionally, within emerging markets,
fi ve strategic acquisitions were made and/or
Philips Annual Report 200850
42
Our group performance
Management discussion
and analysis
18
We care about...
8
Message from
the President
6
Performance highlights
14
Who we are