Royal Philips Electronics NV (PHG) Monday announced that it has reached a binding agreement to acquire Saeco International Group S.p.A., the Italy-based leading espresso machine maker which is controlled by PAI partners.

Successful completion of this transaction is, amongst others, subject to Philips reaching a final agreement with Saeco's banks with which the company has outstanding credit obligations.

Philips will provide additional detailed information about this proposed acquisition if and when conditions for a successful agreement have been met.

Company Web Site: http://www.philips.com