ATLANTA--(BUSINESS WIRE)--As announced by Funai Electric Co., Ltd. (headquarters: Daito, Osaka; hereinafter, “Funai”) on January 29, 2013 in “Notice of Acquisition of Lifestyle Entertainment Businesses of PHILIPS”, Funai reached an agreement with Royal Philips (headquarters: the Netherlands; NYSE: PHG; AEX: PHIA; hereinafter, “PHILIPS”) to acquire from Philips all shares in a company that will hold the operations of the PHILIPS’ Lifestyle Entertainment Business.
However, Funai received notice from PHILIPS on October 25, 2013 that Philips will terminate the transaction.
“We are disappointed that Philips has terminated the contract from their side and we are not able to acquire the Lifestyle Entertainment business unit,” stated Tomonori Hayashi, CEO, Funai Electric. “We have had a long and prosperous relationship with Philips and look forward to continuing that with our brand licensing and distribution agreements of Philips Television and Lifestyle Entertainment products in North America.”
At the same time Philips informed Funai that it will take legal action to recover damages caused by an alleged breach of contract by Funai and that it will submit a request for arbitration at the International Court of Arbitration (ICC). In response, Funai states that there is no such breach of the SPA and that Funai at all times has respected and continues to respect the terms and conditions of the SPA. “We respected the agreement with Philips and feel that there is no grounds for breach,” Tomonori Hayashi stated.
“As Philips stated earlier, there will be no impact on existing agreements between the Funai’s subsidiaries P&F USA and P&F Mexico and Philips P&F/Funai will continue to be the exclusive licensee for TV, Video and Home Theatre products, and will remain the exclusive distributor for Lifestyle Entertainment products in North America,” Hayashi stated.
The Company will make further disclosures when required.
About Funai Electric Co., Ltd.
Funai Electric Co., Ltd., established in 1961, is headquartered in Osaka, Japan and is listed in the Tokyo and Osaka Securities Exchange First Section (6839). In addition to the consumer electronic product brands sold by FUNAI Corporation in the USA and the products sold by other FUNAI sales and marketing companies in Japan, Asia, Europe, and South America, Funai Electric Company, Ltd. is a major original equipment manufacturer (OEM) supplier for consumer electronics, computer, and computer peripheral companies on a global basis. For more information on the Funai group, please visit www.funaiworld.com.
About P&F
P&F is a subsidiary of the Funai Electric Co., LTD, Inc. and is the exclusive licensee for Philips consumer televisions and home theater and Philips Hospitality in North America. P&F also is the exclusive distributor in North America for Philips lifestyle entertainment including, home and portable audio, headphones, portable DVD and accessories. Funai Electric Co., Ltd., established in 1961, is headquartered in Osaka, Japan and is listed in the Tokyo Securities Exchange First Section (6839). In addition to the consumer electronic product brands sold by FUNAI Corporation and the products sold by other FUNAI sales and marketing companies in Asia, Europe, and South America, Funai Electric Company, Ltd. is a major original equipment manufacturer (OEM) supplier for appliance, consumer electronics, computer, and computer peripheral companies on a global basis.
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