Philips sells emergency care business to US private equity firm Bridgefield Capital in strategic shift

Philips agreed to sell its Emergency Care business to U.S.-based private equity firm Bridgefield Capital as part of its ongoing strategic refocus. 

The financial details of the transaction were not disclosed, but the deal includes a 15-year licensing agreement that allows the business to continue using the Philips brand for emergency medical devices. The sale is expected to close by the end of the year, pending regulatory approvals.

The Emergency Care unit, part of Philips’ Connected Care segment, specializes in manufacturing automated external defibrillators (AEDs) and advanced life support (ALS) devices used globally by emergency responders, hospitals, and public safety organizations. The business operates in over 130 countries, has an installed base of more than 3 million devices, and works with 480 distribution partners worldwide.

Philips’ decision to divest follows its broader restructuring efforts, aimed at focusing on its core healthcare businesses after a costly respiratory device recall. The Emergency Care division also faced previous regulatory challenges, including a 2017 consent decree by the U.S. Department of Justice that temporarily halted AED production due to compliance issues. Though Philips resumed operations in 2020, the decree required continued oversight as of last year.

Bridgefield Capital sees the acquisition as an opportunity to strengthen its presence in the healthcare sector. “Philips Emergency Care has built a strong reputation in delivering life-saving technology. We are excited to support its next phase of growth,” said Joseph Mathews, Managing Director at Bridgefield Capital.

With Bridgefield’s investment, the Emergency Care business is set to expand its market presence and continue innovating in emergency medical technology. This deal marks another milestone in Philips’ strategic shift, allowing the company to concentrate on higher-scale healthcare initiatives while securing the future growth of its former emergency care division.

Source: Mass Device

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