Philips Divests Emergency Care Business to Bridgefield Capital in Strategic Move

Philips, a leading healthcare technology company, has announced the divestment of its worldwide emergency care business to Bridgefield Capital, marking a significant shift in the company's strategic focus. The deal, which includes Philips' portfolio of automated external defibrillators (AEDs) and other emergency care hardware, is set to close in the second half of 2025.

Deal Structure and Brand Licensing

While Bridgefield Capital will assume ownership of the division, Philips' brand will continue to be prominently featured on the products. A long-term international licensing agreement, spanning up to 15 years, has been established between the two companies. This arrangement capitalizes on Philips' strong brand recognition in the AED market, which dates back several decades.

Joseph Mathews, Managing Director at Bridgefield Capital, expressed enthusiasm about the acquisition, stating, "We are thrilled to acquire the Philips Emergency Care Business, a top-three global player in the dynamic and rapidly growing emergency medical market." Mathews emphasized the business's industry leadership, innovation, and proven track record in delivering life-saving solutions globally.

Market Position and Global Reach

The emergency care market, valued at over $26 billion according to Bridgefield Capital's estimates, presents significant opportunities for growth. Philips' emergency care business has established a strong global presence, operating in more than 130 countries. The division boasts an impressive installed base of over 3 million AEDs and advanced life support systems, supported by a network of 480 global distribution partners.

Strategic Realignment for Philips

For Philips, this divestment aligns with a strategy initiated two years ago to streamline its operations and refocus its resources. The emergency care unit, previously part of Philips' connected care segment, will now operate as a standalone entity under Bridgefield Capital's ownership.

This move follows Philips' earlier decision to divest its home appliances unit, further solidifying the company's commitment to concentrating on its core healthcare technology business. While the financial terms of the agreement with Bridgefield Capital were not disclosed, the deal represents a significant step in Philips' ongoing transformation.