Funai will pay $200 million, as well as a regular brand licensing fee, to take control of Philips’ product lines, which include its hi-fis and DVD players.
The deal follows the announcement last year that Philips was to transfer its loss-making television unit to a new joint venture arrangement with Hong Kong’s TPV and comes at a time where the company wants to focus on its healthcare, light bulbs and home appliances businesses as part of its "Accelerate!" restructuring plan.
Its latest divestments will not happen immediately - its audio business will pass to Funai in the latter half of this year, while the transfer of its video business will not take place until 2017.
