PHILPS acquisition of Spanish lighting manufacturer Indal Group

Royal PHILPS Electronics announced in June 29th that it had agreed to buy Spanish lighting manufacturer Indal Group, to boost the euro area lighting business.

PHILPS last week announced a profit warning lighting business, mainly due to the sharp decline in demand for electrical products in europe. PHILPS announced that the second quarter profit of the lighting sector is expected to decline from the same period last year to reach about 210 million euros to about EUR 85 million.

Weak consumer demand in Western Europe weakened the lighting business, due to the adverse effects of government austerity programs and the impact of the decline in the construction sector in mature markets.

PHILPS said the acquisition plan to consolidate its strategy - to improve the position in the professional lighting sector, but PHILPS did not disclose the details of the acquisition. Indal Group has approximately 1000 employees, with a sales revenue of EUR 156 million in 2010. The company designs and develops road lighting, industrial lighting and floodlights.