Philips Sells Emergency Care Business to Bridgefield Capital in Strategic Shift

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On January 28, 2025, Royal Philips N.V. announced a pivotal move in its corporate strategy by agreeing to sell its Emergency Care business to Bridgefield Capital, a private equity firm based in the United States.

This sale is part of Philips’ ongoing efforts to streamline operations and concentrate on its core healthcare segments, especially following challenges such as a significant recall of respiratory devices.

The financial specifics of the acquisition have not been disclosed, but the transaction is anticipated to close in the second half of 2025, pending regulatory approvals and customary conditions.

As part of the agreement, Philips will retain a licensing arrangement for the brand for up to 15 years, allowing Bridgefield to market and manufacture emergency medical devices under the Philips name.

Bridgefield Capital plans to establish a new entity named Emergency Care Holdings, aiming to enhance its footprint in the emergency medical products sector, which is valued at over $26 billion.

The Philips Emergency Care business operates in more than 130 countries and includes over 3 million Automated External Defibrillators (AEDs) and Advanced Life Support (ALS) devices.

Joseph Mathews, Managing Director of Bridgefield Capital, expressed excitement about the acquisition, noting that the Philips Emergency Care division exemplifies leadership and innovation in providing life-saving solutions.

Richard Foster, another Managing Director at Bridgefield, emphasized that as an independent entity, the business would focus on rapid innovation and delivering exceptional value to customers.

Philips’ decision to divest this segment aligns with its broader strategy initiated in January 2023, which emphasizes focusing resources on areas where it can achieve greater scale and financial impact.

By shedding its Emergency Care division, Philips aims to concentrate on its Connected Care segment while ensuring that the former unit continues to thrive under new ownership.This acquisition marks a significant milestone for both companies.

For Philips, it represents a strategic refocus on core operations amid ongoing restructuring efforts.

For Bridgefield Capital, it provides an opportunity to establish a substantial presence in the rapidly evolving emergency medical products market while leveraging Philips’ legacy in life-saving technologies.

The deal is expected to create new pathways for growth and innovation in emergency care solutions globally.

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