(Bloomberg) -- Royal Philips NV has picked Goldman Sachs Group Inc. and JPMorgan Chase & Co. for a disposal of its home appliance business, which could fetch more than $3 billion, according to people familiar with the matter.
The sale process is set to kick off around mid-2020, said the people, who asked not to be identified as the discussions are private. The business is likely to attract interest from Asian buyers, including Chinese appliance makers, and private equity firms, they said. European competitors are also looking, one of them said.
Philips in January announced its plan to sell the unit that produces everything from coffee makers to air purifiers and expected it to take 12 to 18 months. The proposed divestment is part of Chief Executive Officer Frans van Houten’s revamp of the Dutch company into a focused health-care equipment maker.
Van Houten has said the sale of the unit, which generates 2.3 billion euros ($2.5 billion) in sales, should generate “a lot of interest.” The business could fetch between $2.5 billion and $4 billion, depending on bidder appetite and forecasts for the business after a carve-out, they said.
Representatives for Philips, Goldman and JPMorgan declined to comment.
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