Emergency Care Holdings (ECH), a platform backed by Bridgefield Capital, completed the purchase of Philips’ Emergency Care business on 14 January 2026. The divested assets will operate under the new brand Heartstream and will continue to market select products under a Philips brand license, preserving the legacy brand equity while giving the new entity a clear, standalone identity.
The financial terms of the transaction were not disclosed, but the deal is expected to provide ECH with a scalable, profitable foundation. Philips is divesting a segment that, while historically strong, is not aligned with its core focus on Diagnosis & Treatment and Connected Care. The sale allows Philips to reallocate capital and management attention to its high‑growth diagnostic imaging, ultrasound, and connected‑care platforms.
ECH’s strategy is to build a global pre‑hospital emergency‑medical‑technology platform. With an installed base of more than three million automated external defibrillators and advanced life‑support devices, the new Heartstream business already serves over 130 countries and 480 distribution partners. The acquisition expands ECH’s geographic reach and product breadth, positioning it to capture a larger share of the $26 billion global emergency‑medical‑products market.
Philips’ decision to exit the emergency‑care segment reflects a broader shift toward its core health‑technology portfolio. In 2024, Diagnosis & Treatment grew 1 % in comparable sales, while Connected Care grew 2 %. Philips expects sequential comparable‑sales growth of 1‑3 % and margin expansion of 30‑80 bps in 2025, and is preparing to report 2025 results on 10 February 2026. The divestiture frees resources for these high‑growth areas and reduces exposure to legacy product cycles.
The Heartstream platform will leverage Philips’ proprietary informatics and connectivity capabilities, creating recurring software and service revenue streams that complement the existing hardware portfolio. This integration is expected to enhance margin potential for the new standalone entity and provide a scalable model for future acquisitions in the pre‑hospital space.
Bridgefield Capital’s CEO highlighted the opportunity to consolidate a fragmented market: “We see a significant opportunity to consolidate a fragmented global market while expanding access to life‑saving technologies worldwide.” ECH’s management added that the acquisition “launches a platform built for scale, operational excellence and long‑term value creation.” Philips’ leadership emphasized that the sale “concentrates resources on the high‑growth Diagnosis & Treatment and Connected Care segments, where we see the greatest potential for scale and profitability.”
The transaction signals a strategic realignment for both companies. Philips is sharpening its focus on diagnostic imaging, ultrasound, and connected‑care solutions, while ECH is positioned to become a leading platform in emergency‑medical technology, backed by a strong brand, a global distribution network, and recurring revenue potential. The deal underscores the growing importance of integrated hardware‑software solutions in the pre‑hospital care market and sets the stage for further consolidation in the sector.
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