De' Longhi rises after it agrees to buy stake in La Marzocchi
22/12/2023 10:47
** Shares in De' Longhi DLG.MI jump as much as 7.4% after
the Italian home appliance maker agreed to buy a stake in
high-end espresso machine manufacturer La Marzocco to create a
hub with its Eversys coffee machine-making unit
** The company said on Thursday it would spend $374 mln to
acquire 41.2% of La Marzocco from De' Longhi Industrial, its
parent company, and from other minority shareholders
** "The business combination aims to create a world-class
operator in the professional coffee industry," Banca Akros says,
noting this would create commercial synergies and integrations
in distribution and product development
** Based on preliminary forecasts, Akros says the deal could
enhance De' Longhi's EPS by around 7%
** Brokerage Equita says the deal will strengthen De'
Longhi's sales and earnings, while "additional M&A options are
not to be ruled out"
** The stock is up 2.4% at 1037 GMT, outperforming the
Italian all-share index .FTITLMS that is broadly flat
($1 = 0.9083 euros)
(Reporting by Alberto Chiumento)
((Alberto.Chiumento@thomsonreuters.com;))