Philips reaches an agreement to acquire Saeco International Group S.p.A., a portfolio company of PAI partners

Amsterdam, the Netherlands – Royal Philips Electronics (AEX: PHI, NYSE: PHG) announced today that it has reached a binding agreement to acquire Saeco International Group S.p.A., the Italy-based leading espresso machine maker which is controlled by PAI partners. Successful completion of this transaction is, amongst others, subject to Philips reaching a final agreement with Saeco’s banks with which the company has outstanding credit obligations.

Philips will provide additional detailed information about this proposed acquisition if and when conditions for a successful agreement have been met.