Philips offloads PC monitor biz to TPV

Royal Philips Electronics has reached brand-licensing agreement to transfer its PC monitors business, IT Displays, to TPV Technology Ltd. The move is in line with the company's commitment to take steps to improve the profitability levels at its TV business, of which the IT Displays unit forms part.

Under the terms of the agreement, TPV will assume responsibility for sourcing, distribution, marketing and sales of all Philips' IT Displays activities worldwide. As part of the intended brand licensing agreement, TPV can exclusively use the Philips brand name for PC monitors worldwide, in exchange for which Philips will receive revenue-based royalty payments. Completion of the transaction, which is expected in the course of 2008, is subject to applicable regulatory approvals and the fulfillment of specific closing conditions.

The intended agreement with TPV represents a further step by Philips to reposition itself in the digital display business and accelerates efforts to address the unsatisfactory performance of its TV business. In April of this year,

Philips already announced it would transfer its consumer TV operations in North America, and take steps to further optimize its global supply base in TV. Philips remains ahead-of-plan in optimizing its TV operations and will book approximately $103.38 million in charges in Q2 08, which are largely related to these efforts.