Philips in AV arm deal with Gibson

Dutch technology company Philips says it has struck a deal with music company Gibson Brands of the US to sell its audiovisual equipment business for $135m.

Philips is still locked in arbitration with Japan’s Funai after a similar deal to sell the same businesses for $200m fell apart last year, but said that will not affect the new agreement.

The companies said the deal makes sense as Gibson is big in Japan and the US, while Philips is strong in Europe, China and Latin America.

The audiovisual equipment business employs some 1,900 people and makes home audio systems, headphones, speakers, portable audio and video players, media players, telephones and more.

It turned a marginal $4.1m profit in 2013, on sales of $1.3bn.