The Agnelli family’s investment firm Exor has announced that it has bought a 15% stake in Philips, a Dutch company that specializes in healthcare technology. The deal is worth around $2.8 billion and marks Exor’s entry into the healthcare sector.
Exor diversifies its portfolio with Philips
Exor is a holding company that controls several businesses, including Ferrari, Juventus Football Club, Stellantis, and The Economist Group. It is led by John Elkann, the billionaire grandson of Fiat founder Giovanni Agnelli. Exor has been expanding its investments beyond the automotive industry in recent years, seeking to tap into new markets and technologies.
Philips is one of the world’s leading providers of medical devices, diagnostic solutions, and personal health products. It has been transforming itself from a diversified conglomerate into a focused healthcare company since 2011. Philips has also been dealing with a costly product recall of millions of sleep apnea devices since June 2021.
Exor said that it bought the 15% stake in Philips through on-market share purchases and an agreement with a major financial institution. The deal allows Exor to increase its stake to a maximum of 20% of Philips’ outstanding ordinary share capital, according to the agreement.
“The path of change taken by Philips in recent years has created a company that combines two areas – health care and technology – to which we are committed,” Elkann said in a joint statement with Philips.
Philips welcomes Exor as a long-term shareholder
Philips said that it welcomes Exor as a long-term shareholder and that it looks forward to engaging with Exor on its strategic priorities and value creation plans. Philips also said that it remains committed to delivering on its financial targets and creating value for all its stakeholders.
Philips CEO Frans van Houten said that he is pleased with Exor’s confidence in Philips’ strategy and future prospects. He added that Exor’s expertise and network will be valuable for Philips as it pursues its vision of improving the lives of billions of people through health technology.
Philips shares rose by 4.5% on Monday after the announcement of the deal, reaching their highest level since July 2021. Exor shares also gained by 1.6%, outperforming the European market.
Exor follows other family-owned investors into healthcare
Exor is not the only family-owned investment firm that has shown interest in the healthcare sector. In recent years, several prominent families have made significant investments in healthcare companies, such as:
- The Wertheimer family, which owns Chanel, bought a 20% stake in BioNTech, a German biotechnology company that developed one of the first Covid-19 vaccines, in 2019.
- The Reimann family, which owns JAB Holding, acquired Pantheon Healthcare Group, a UK-based provider of home care services, for $1.9 billion in 2020.
- The Bettencourt family, which owns L’Oréal, invested in Moderna, another Covid-19 vaccine maker, through its holding company Tethys Invest in 2020.
These investments reflect the growing attractiveness of the healthcare sector, which offers opportunities for innovation, growth, and social impact. The Covid-19 pandemic has also highlighted the importance of healthcare and the need for more investment in research and development.
