WOOX Innovations joins Gibson Brands

Philips to sell WOOX Innovations to Gibson Brands


  • Philips-branded audio and home entertainment innovations will continue to be available to consumers worldwide
  • Transaction supports Gibson Brands’ ambition to become global leader in music and home entertainment  

Amsterdam, the Netherlands and Nashville, USA – Royal Philips (NYSE: PHG, AEX: PHIA) today announced that it has signed an agreement regarding the sale of WOOX Innovations, its Audio, Video, Multimedia and Accessories business, to Gibson Brands, Inc., a global music and lifestyle company. Under the terms, Gibson Brands will pay $135 million and a brand license fee, relating to a license agreement for an initial period of 7 years. The deal is expected to close in the second half of 2014, subject to customary conditions, including regulatory filings and works council procedures.

Gibson Brands, based in Nashville, USA, has most recently invested in audio brands including Onkyo and TEAC as part of its ambition to become the global leader in music and sound. This transaction will leverage Gibson Brands’ strong market presence in the U.S. and Japan, and WOOX Innovations’ market strength with Philips-branded audio and home entertainment products in Europe, China, Latin America and other growth geographies. 

“With this transaction, we are taking another important step in Philips’ transformation to become a leading technology company in health and well-being,” said Philips Chief Executive Officer Frans van Houten. “Philips and Gibson Brands have played significant roles in shaping the home entertainment and music industries and with this agreement the Philips brand will continue to be associated with innovative products in this space.” 

“This agreement is the most significant step yet in Gibson Brands’ journey to become the largest music and sound technology company in the world,” said Gibson Brands Chairman and CEO Henry Juszkiewicz. “By acquiring Philips’ audio and home entertainment business, our goal is to continue to provide the most exceptional consumer audio products and experiences in the world. I am thrilled to extend the reach of Gibson Brands around the world and to welcome this great team to the Gibson family.”

The Video business will stay with Philips until a transfer to Gibson Brands in 2017, related to existing intellectual property licensing arrangements.

WOOX Innovations, headquartered in Hong Kong with approximately 1,900 employees worldwide, is a global and profitable business driving the Philips brand in sound, home entertainment and related accessories. 


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Media Contacts
For further information, please contact
Mark Groves, WOOX Innovations
e: press@woox.com p: 310-888-2203
About WOOX Innovations

WOOX Innovations is dedicated to delivering meaningful innovation in connected entertainment. From great sound quality, to advanced technology and sophisticated design, we strive to improve the entertainment experience. Headquartered in Hong Kong and with over 2000 employees worldwide, WOOX Innovations develops, markets and sells Philips branded audio, video, multimedia and accessories products worldwide. WOOX Innovations is a brand licensee of Koninklijke Philips N.V.

A GIBSON BRANDS COMPANY
WOOX INNOVATIONS IS A BRAND LICENSEE OF KONINKLIJKE PHILIPS N.V.
Gibson Brands is a global leader in music and audio lifestyle, and is dedicated to bringing the finest experiences by offering exceptional products with world-recognized brands. Starting with the number one guitar brand, Gibson, the company has a portfolio of 23 brands that includes audio brands such as Onkyo, TEAC, KRK Systems, Cerwin-Vega! and Stanton. Founded in 1849 and headquartered in Nashville, Tennessee, USA, Gibson Brands is one the fastest-growing companies in the music and sound industries.
Koninklijke Philips N.V. of the Netherlands is committed to improving people's lives through meaningful innovation. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights.