Philips sells audio arm to Gibson for $135 million

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AMSTERDAM (AP) — Dutch technology company Philips says it has struck a deal with music company Gibson Brands of the U.S. to sell its audiovisual equipment business for $135 million.

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

The companies said the deal makes sense as Gibson is big in Japan and the U.S., 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 $4.1 million (3 million euro) profit in 2013, on sales of $1.3 billion.

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