Amsterdam, The Netherlands -
said Monday that it has completed the transfer of its money draining television businesses outside of North America and mainland China into a joint venture with Hong Kong-based TPV Technology.
The new company, TP Vision, is 70 percent owned by TPV and 30 percent by Philips, and is headquartered in Amsterdam, according to the companies.
Maarten de Vries, who was named the head of the venture, has directed the company to become a top three player in its markets.
"TP Vision will be a strong player in the global TV market and will ensure the continuity of the Philips TV brand in the markets," said Philips CEO Frans van Houten in a statement announcing the transfer. "TP Vision will leverage the strength of the Philips brand, innovation power and trade relationships, with the additional scale and manufacturing strengths of TPV. The TV partnership with TPV enables Philips to focus on expanding market leadership positions across our healthcare, consumer lifestyle and lighting sectors."
Philips took a $363 million charge in the fourth quarter as part of the separation from the television business.
TP Vision will be responsible for the design, manufacturing, distribution, marketing and sales of Philips Television worldwide, with the exception of mainland China, India, United States, Canada, Mexico and certain countries in South America.
As part of the transaction, the Philips Television innovation and manufacturing sites, commercial organizations, headquarters and employee base of close to 3,300 will transfer to TP Vision.
In September 2008, Funai, through its P&F USA subsidiary, licensed the rights to make and market Philips-branded TVs and video products in the United States and Canada through 2013. The deal was expanded in 2009 to cover North America, including Mexico, and 12 northern Latin American countries.