Royal Philips (PHG) announced that it has signed an agreement to sell an 80.1% interest in Lumileds, a supplier of LED components and automotive lighting, to certain funds managed by affiliates of Apollo Global Management (APO).

Philips will retain the remaining 19.9% interest in Lumileds. The transaction values Lumileds at an enterprise value of approximately $2B, including debt and debt-like items. Philips expects to receive cash proceeds, before tax and transaction-related costs, of approximately $1.5B and participating preferred equity. The transaction is expected to be completed in the first half of 2017, subject to customary closing conditions, including the relevant regulatory approvals.