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US-Chinese Cleantech Fund Does Billion Dollar Dutch Deal

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April 2, 2015

News this week that Go Scale Capital, a cleantech fund backed by China’s GSR Ventures and US-based Oak Investment Partners, acquired Philips Lighting (LED components and automotive lighting) for USD 3.3 bn signals a significant new growth investor in the private equity industry, based on the size of the transaction, and it is more evidence of the globalization of the PE industry. A PE headline like that would have been hard to imagine as recently as four years ago.

 

The Philips lighting business, which does about EUR 2 billion in annual sales, will be folded into Lumileds, a Silicon Valley-based manufacturer of LED materials, and will operate under that brand. The deal is interesting as it enables Philips to hold 34% of the new venture, a goodwill inducing stake in the future growth of the new venture.

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