Growing in Andover
Dutch giant Philips Electronics to move North American headquarters to Mass.
Royal Philips Electronics NV, already one of the Bay State's largest employers, is becoming even bigger.
The Dutch technology giant confirmed yesterday it's in the process of moving its North American headquarters from New York City to Andover, adding about 50 employees in the town. The firm now has almost 4,600 workers in Massachusetts, mostly in Andover, Burlington, Fall River, Framingham, and Wilmington.
"It's a great opportunity for us to get our North American headquarters closer to some of our key businesses," said Scott Weisenhoff, an Andover resident who was named chief executive of Philips Electronics North America two weeks ago. Weisenhoff previously worked for its Philips Healthcare division, also based in Andover.
The company plans to formally announce the move at a news conference Tuesday with Weisenhoff and Governor Deval L. Patrick. A Patrick administration spokeswoman declined to comment.
Philips is just one of a number of European tech and life sciences companies expanding in Massachusetts. Drug companies Shire PLC and EMD Serono Inc., for instance, are both expanding Bay State offices. And Soadco, an Andorran medical device company, recently disclosed plans to open its US headquarters and a manufacturing plant in the Boston area.
In some cases, the weak US dollar has also encouraged foreign investors to buy US companies, giving foreign companies a larger presence here.
"It's a good thing when there are new jobs brought into Massachusetts," said Susan Houston, executive director of the Massachusetts Alliance for Economic Development.
Houston said European companies are drawn here by the weak US dollar and the state's strengths in healthcare and technology. "They find it very hospitable from a business standpoint."
Philips has about 30,000 employees and close to $12 billion in annual sales in North America, accounting for about one-third of its worldwide revenue. And it has steadily become a bigger player in Massachusetts over the past eight years.
The lion's share of its local employees work for the healthcare unit in Andover, which makes defibrillators, ultrasound devices, and health monitoring systems. Philips became a major Andover employer in 2000 when it bought Agilent Technology's healthcare unit for $1.7 billion.
Then two years ago, Philips bought Framingham-based Lifeline Systems for $750 million. The small Lifeline transmitters, designed to be worn around the neck or wrist, can be used to summon help if a client falls or needs assistance. (A competitor, Life Alert, is famous for commercials with an elderly woman shouting: "Help! I've fallen and I can't get up!")
But Philips's lighting business has also become a key part of its local operations. The company bought Color Kinetics Inc., a Boston company known for designing lighting systems with light-emitting diodes, for $791 million last year. And it acquired Genlyte Group, a US lighting company that makes fixtures in Fall River and Wilmington under the name Lightolier, for $2.7 billion in January. Weisenhoff said the company will likely open a North American lighting headquarters in Massachusetts to help oversee the various businesses.
Weisenhoff said the company didn't receive any tax subsidies or other incentives to move its North American headquarters to Massachusetts.
"We didn't ask for any assistance," Weisenhoff said. "We are thrilled to death with the innovation we have seen in Massachusetts."
He predicted the company's local employment will likely be steady in the near term, though it could eventually rise as local operations continue to grow. He said the firm doesn't currently have plans to consolidate its various locations around the state.
This week, Philips reported North American sales rose to $3.2 billion for the quarter. Weisenhoff said the growth was notable, given the slowdown in the US economy.
Todd Wallack can be reached at twallack@globe.com.
