Companies interested in lighting assets will have the opportunity to bid for Europe’s best-known brands Philips and Osram in two separate auctions starting this month.
A consortium comprising buyout groups KKR, CVC and Onex is expected to hand in an offer for the Philips business, as well as peers like Bain, Apollo and Blackstone and Chinese bidders, they said, adding that U.S.-based Acuity may show interest in parts.
The groups will likely value the business at 7-8 times expected core earnings or roughly 5 billion euros ($5.45 billion), the sources said.
Separately, German peer Osram has asked for tentative bids for its traditional lamps which may be valued at roughly 500 million euros in a potential deal, the sources said.
Chinese LED products maker MLS as well as a consortium comprising China’s Foshan and buyout group Bain, are expected to make offers, sources familiar with the deal said.
“The sales process is ongoing,” an Osram spokesman said, declining to comment further. The prospective Philips and Osram lamps businesses bidders as well as Philips declined to comment or were not immediately available for comment. ($1 = 0.9179 euros)