Philips Components, a division of Philips Electronics N.V., will sell its non-ceramic passive components business to Compass Partners International, a private equity firm based in London, for an undisclosed amount.
Philips is divesting the $530 million business, which includes 5,000 employees and production facilities involved in the manufacture of electrolytic and film capacitors, leaded and non-linear resistors, potentiometers, and trimmers, to concentrate on growing its ceramic business.
"The divestment allows us to focus on ceramic components for use in volume electronic applications, notably audio, television, consumer, communications and PC-related systems, in which digital technology is increasingly important," said Y.C. Lo., chairman and chief executive of Philips Components, Eindhoven, The Netherlands, in a statement.
Philips will continue to manufacture and market ceramic components, including multi-layer capacitors, chip resistors, ferrite ceramics, and integrated passive components.