Bain Capital and Apax Partners join private equity consortium purchasing majority stake in Philips' semiconductor unit
21st August 2006Apax Bain Capital and Apax Partners today announced that they had signed definitive commitments to join an expanded private equity consortium that has agreed to
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.
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 businesses.
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 billion.
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.
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