Philips Completes Acquisition of Pentium Electronics Deal Volume of 2.5 Billion in the Fourth Quarter

Yesterday, Royal Dutch Philips Electronics announced that it had agreed to acquire Pentium Electric (Shanghai) Co., Ltd. (hereinafter referred to as “Pentium”), a leading kitchen appliance company in China. After completion of confirmatory due diligence and other customary closing conditions, the acquisition is expected to be completed in the fourth quarter of 2011. Although it did not disclose the financial details of the acquisition, some media disclosed that the acquisition amounted to approximately RMB 2.5 billion.

According to public information, Pentium products are widely used in Chinese kitchens, including rice cookers, induction cookers, electric pressure cookers and electric kettles. After the acquisition, Pentium will continue to maintain the "Pentium" brand. "By acquiring Pentium, Philips is vigorously expanding its product line in China and at the same time enhancing its ability to lead innovation in the global kitchen appliances market." Mr. Kong Xianghui, Chairman and Executive Vice President of Philips Greater China, said, "At the beginning of this year, Philips had Moved the global headquarters of the home care business division to Shanghai, and Pentium's strength in development, design and manufacturing, together with Philips’ strong brand and distribution network, can accelerate our growth in the vibrant Chinese kitchen appliances market and throughout Asia. Help us to better serve the changing needs of Chinese consumers."

It is understood that Pentium headquarters is located in Shanghai and has more than 1,800 employees. Upon completion of the transaction, Pentium will become part of the Philips Home Care business unit headquartered in Shanghai. The acquisition reflects Philips' commitment to build another domestic market in China. Philips will expand its opportunities in China and other markets through its understanding of the Chinese market.

Liu Jianguo, chairman of Pentium, said: "With Philips' strong alliance, we can strengthen Pentium's position and take advantage of the joint strengths of the two companies to better serve our customers and benefit our employees."