De' Longhi creates espresso maker hub with La Marzocco
21/12/2023 18:56
MILAN, Dec 21 (Reuters) - Italian home appliance maker
De' Longhi DLG.MI on Thursday said it was buying from its
parent company a stake in high-end espresso machine manufacturer
La Marzocco to create a hub with its Eversys unit, as it bet on
coffee to drive growth.
Milan-listed De' Longhi will spend $374 million to acquire
41.2% of La Marzocco from De' Longhi Industrial, its parent
company, as well as from other minority shareholders.
De' Longhi will control around 61.4% of the new hub which
will see the two companies remain independent, while reaping
benefits in terms of savings and cross-selling opportunities.
The hub is forecast to have an aggregate turnover, on a
pro-forma basis, of around 372 million euros and an adjusted
core profit of roughly 87 million euros, De' Longhi said.
"The group, once the operation has been finalised, will
still have ample financial resources and significant financial
flexibility in view of future growth", Chief Executive Fabio De'
Longhi said in a statement.
De' Longhi said the investment, which is subject to rules
regulating deals among related parties, marked an acceleration
in its strategy which sees coffee, both professional and
consumer, as a long-term growth engine.
The deal is expected to be finalised by the first quarter.
Lazard acted as sole adviser for De' Longhi.
(Reporting by Elisa Anzolin; Editing by Valentina Za)
((elisa.anzolin@thomsonreuters.com; 0039 0266129692;))