Dutch lighting and healthcare company Philips will merge its Lumileds LED components and Automotive lighting subsidiaries into a standalone unit to which they will attempt to attract third-party capital, the company said.

The two businesses had combined sales of about 1.4 billion euros ($1.9 billion) in 2013.

“Both our Lumileds and Automotive lighting businesses are strong players in the lighting industry and ready to pursue more growth and scale, independently of Philips Lighting,” said Philips CEO Frans van Houten in a statement on Monday.

“As a world-leading lighting components business, they will have increased flexibility to attract additional investors to accelerate growth,” he said.

Philips said it would remain a shareholder and customer of the new company and would continue to collaborate with it on research and development.

The process of merging the two divisions into an integrated business, which will be led by current Lumileds CEO Pierre-Yves Lesaicherre, is expected to be completed in the first half of 2015 and to cost Philips some 30 million euros in the second half of 2014.