Dive Brief:
- Philips said Tuesday it has allowed its largest shareholder to increase its stake in the business to up to 22%.
- The shareholder, Exor, bought a 15% stake in Philips in 2023, when the company was still wrestling with the fallout from its recall of Respironics devices.
- Philips capped Exor’s stake at 20% in the original deal. Under the revised long-term agreement, Philips’ supervisory board can authorize Exor to increase its stake above the revised 22% cap.
Dive Insight:
Exor is the holding company of Italy’s billionaire Agnelli family. Traditionally associated with the Italian car industry, Exor has diversified into medtech and healthcare through investments in companies such as Institut Mérieux, Lifenet and Philips. Exor agreed to sell Lifenet, an Italian manager of hospitals and outpatient clinics, this year.
Philips is a key investment for Exor, with the holding company focusing on the medtech business, the carmakers Ferrari and Stellantis, and the agriculture and construction player CNH in its 2025 letter to shareholders.
The revised agreement with Philips reflects the investor’s support for the company’s long-term strategy and continued commitment to the business, Exor CEO John Elkann said in a statement. Feike Sijbesma, chairman of Philips’ supervisory board, noted Exor’s “constructive engagement” with the company. The investor’s long-term commitment reflects “confidence in Philips and its strategy,” Sijbesma added.
Sijbesma oversees a supervisory board that includes Benoît Ribadeau-Dumas, an Exor executive. Philips added Ribadeau-Dumas to the board in 2024. Exor, which retains the right to nominate one person to the board under the new deal, recently gave Ribadeau-Dumas more responsibility.
Since July 1, Ribadeau-Dumas has worked as deputy CEO of Exor. The appointment put a person with close ties to Philips in a key position at Exor as the holding company implemented a revised strategy after a year in which its investments underperformed.
Exor responded to the challenges by simplifying its portfolio and concentrating on larger companies. By inking deals to divest its stakes in Lifenet and three other companies, Exor positioned itself to “pursue a significant new investment similar in scale and ambition to Philips,” Elkann said in March. Exor had more than 3.5 billion euros ($4 billion) to invest.
