Philips Electronics buys out biggest rival

Royal Philips Electronics NV, Amsterdam, will buy the Genlyte Group Inc., Louisville, Ky., for $2.7 billion. In a management-agreed upon take over, Philips agreed to pay $95.50 (64.77 euros) per share at a value of 1.83 billon euros. Genlyte’s shares closed at $62.67 on Friday and the Philips’ offer represents a 52% premium.

Philips hopes the acquisition will strengthen its position in the energy-efficient lighting and surpass General Electric Co. as the largest lighting company in North America. The replacement of incandescent and fluorescent lights by light emitting diodes (LED) will help drive the cost of production of the energy saving lighting products down.

Philips does not plan to cut any of Genlyte’s 6,700 employees and hopes the deal will be completed in the first quarter of 2008, pending approval of shareholders and regulators.

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