ROTAL Philips NV has reached out to Chinese rivals to gauge their interest in acquiring its home appliance unit, which could fetch as much as US$4 billion, sources with knowledge of the matter said.

The Amsterdam-based company has approached fellow white goods manufacturers Haier Group Corp. and Midea Group Co. ahead of a formal sale process expected to start in the fourth quarter, the sources said.

Philips is contacting Turkish household appliance makers Arcelik AS and Vestel as well to test their appetite for a deal, one of the sources said.

Buyout firms Blackstone Group Inc., CVC Capital Partners and KKR & Co. are also expected to study the business when the sale kicks off, according to the sources.

When Philips was selling its Lumileds lighting components division about five years ago, the business attracted interest from private equity firms including Apollo Global Management LLC, Bain Capital, CVC, KKR and Onex Corp., people familiar with the matter said at the time.

Philips said in January it plans to sell its home appliances unit, which produces everything from coffee makers to air purifiers and generates revenue of 2.3 billion euros (US$2.6 billion). The potential disposal forms part of chief executive officer Frans van Houten’s efforts to revamp Philips into a focused health care equipment maker.

The CEO said on an earnings call Monday that he expects a sale to be completed in the third quarter of 2021.

“This is fundamentally a solid business with market-leading positions and we expect to engage with interested parties after the summer,” van Houten said. (SD-Agencies)