Philips sells emergency care business to Bridgefield Capital

NETHERLANDS – Philips has decided to divest its global emergency care business, which includes key products like Automated External Defibrillators (AEDs) and other medical devices used both inside and outside hospitals.

The company has entered into a deal with Bridgefield Capital, which will take over the division.

Despite the change in ownership, the products will still bear the Philips name, thanks to a 15-year international licensing agreement.

Philips has long been recognized as a leader in the AED market, a reputation it has built over decades, though the financial details of the transaction have not been disclosed.

Bridgefield Capital, which now owns the Philips Emergency Care Business, sees this acquisition as a major opportunity.

According to Joseph Mathews, Managing Director of Bridgefield, “We are thrilled to acquire the Philips Emergency Care Business, a top-three global player in the dynamic and rapidly growing emergency medical market.”

He went on to highlight the business’s industry leadership, innovation, and proven ability to provide life-saving solutions globally, adding, “We are excited to support its next phase of growth as a focused, standalone entity.”

This move aligns with Philips’ broader strategy of refocusing its efforts, which it initiated two years ago.

The company explained that the sale of its emergency care unit is part of its plans to streamline resources and concentrate on other areas of growth. The deal is expected to be finalized by the second half of 2025.

The Philips Emergency Care Business operates in over 130 countries, boasting a portfolio of more than 3 million installed AEDs and Advanced Life Support (ALS) devices. The division also benefits from a robust network of 480 distribution partners worldwide.

Bridgefield plans to integrate the business into a new entity called Emergency Care Holdings, which will focus on expanding in the US $26 billion global emergency medical products market.

Their goal is to improve manufacturing capabilities, enhance the distribution network, and drive continued innovation in life-saving technologies.

At Bridgefield, the emphasis is on investing in companies where they can build strong, independent platforms in high-growth sectors.

Mathews further explained, “We focus on investment opportunities where we can create value by building strong, stand-alone platforms in attractive industry segments.”

The Philips Emergency Care Business has been a trailblazer in emergency medical technology, notably introducing the biphasic waveform AED in the late 1990s, a technology that has since become the industry standard.

Its range of products includes AEDs for home and public use, durable defibrillator-monitors for emergency medical services, and manual defibrillators for hospitals.

The division also offers advanced informatics solutions to enhance care coordination and ensure device readiness, crucial for addressing critical healthcare needs such as sudden cardiac arrest, which causes over 4.25 million deaths annually.

Bridgefield Capital, founded in 2015, specializes in corporate carve-outs, helping businesses transition from larger corporations into independent entities.

Richard Foster, Managing Director at Bridgefield, stated, “As a focused and agile stand-alone entity, the Philips Emergency Care Business can concentrate on its core mission, innovate rapidly, and deliver exceptional value.”

The transaction is subject to regulatory approvals and customary conditions, with the deal expected to close by the end of 2025.