Bain Capital and Apax Partners join private equity consortium purchasing majority stake in Philips' semiconductor unit
21 August 2006
London, 21 August 2006 Bain Capital and Apax
Partners today announced that they had signed definitive
commitments to join an expanded private equity consortium that has
agreed to acquire an 80.1 percent stake in the Semiconductor
Division of Royal Philips Electronics (NYSE:PHG, AEX:PHI).
Philips announced on August 3, 2006 that it had signed an agreement
to sell the majority stake in the business.
The expanded consortium will be comprised of Kohlberg Kravis
Roberts & Co., Silver Lake Partners, Bain Capital, Apax
Partners and AlpInvest Partners NV.
Bain Capital and Apax Partners joining the consortium is a
further vote of confidence in the company's prospects and in the
management team. The entire consortium shares an extensive
track record of investments in technology and semiconductor
Philips' semiconductor business is a leading supplier of silicon
system solutions for mobile communications, consumer electronics,
digital displays, contactless payment and connectivity, and in-car
entertainment and networking. The business employs about
37,000 people worldwide, and had sales in 2005 of EUR 4.6
The transaction is expected to close in the fourth quarter of
2006, and is subject to closing conditions, including governmental
and regulatory approvals.
About Bain Capital
Bain Capital, LLC (www.baincapital.com) is a
global private investment firm that manages several pools of
capital including private equity, venture capital, public equity
and leveraged debt assets with more than $38 billion in assets
under management. Since its inception in 1984, Bain Capital
has made private equity investments and add-on acquisitions in over
230 companies in a variety of industries around the world, and has
a team of almost 200 professionals dedicated to investing in and
supporting its portfolio companies. Bain Capital has a long
history of investing in technology and semiconductor businesses,
including current investments in FCI, Sensata Technologies, SunGard
Data Systems, UGS and MEI Conlux, as well as past investments in
Integrated Circuit Systems, Therma-Wave and ChipPAC.
Headquartered in Boston, Bain Capital has offices in New York,
London, Munich, Tokyo, Hong Kong and Shanghai.
About Apax Partners
Apax Partners (www.apax.com) is one of
the world's leading private equity investment groups. It
operates across the United States, Europe, Israel and Asia and has
more than 30 years of investing experience. Funds under the
advice of Apax Partners total $20 billion around the world.
These Funds provide long-term equity financing to build and
strengthen world-class companies. Apax Partners Funds invest
in companies across its global sectors of Tech & Telecom,
Retail & Consumer, Media, Healthcare and Financial &
Business Services. Apax Partners' Funds Tech & Telecom
investments include Bezeq, TIM Hellas, Inmarsat, Intelsat, Dialog
Semiconductor, Frontier Silicon, Kabel Deutschland, Power Paper,
Q-Cells, CSG Solar and Modem Art.
For Bain Capital:
Stanton Crenshaw Communications
T: +1 212 780 0701
For Apax Partners:
Head of Communications
T: +44 20 7872 6300