Netherlands-based Philips, the world’s biggest lighting maker and Europe’s biggest consumer electronics producer, said on Friday it is paying $66 per share in cash for Respironics, which represents a 24% premium over the company’s closing price of $53.11 on Thursday.
Respironics’ board has agreed to the offer. Shareholders must sign off on the deal as well, the company said in a news release.
The company has recently broken ground on a $32 million, 165,000-square-foot manufacturing facility in Lower Burrell, Pa, but was to maintain its Murrysville headquarters.
The company posted sales of about $1.2 billion in the 12-month period from September 2006 to this year, and its sales have grown at a compound annual growth rate of 19 percent in the last five years.
Respironics will become the headquarters for Philips Home Healthcare Solutions group, and Respironics’ senior executives are expected to remain with the organization.
A spokeswoman declined to say whether the Respironics name will be retained following the completion of the deal.
"The combination of Respironics and Philips will allow us to continue to provide exceptional products and services to our customers and allow Respironics to expand its leadership in the global sleep and respiratory markets," said John Miclot, CEO of Respironics said in a statement. Miclot will remain as CEO of Phillips Home Healthcare Solutions.
The Respironics transaction is expected to close in the first quarter of 2008.