ELECTROLUX
Major takeovers about to be sealed in Chile and Egypt / “Significant revenue and cost synergies”
In a move to expand in Latin America, Swedish household appliance giant Electrolux (Stockholm; www.electrolux.com) will acquire the 64% controlling stake held by industrial conglomerate Sigdo Koppers (Santiago / Chile; www.sigdokoppers.cl) in Chilean appliance manufacturer Compañia Tecno Industrial (CTI, Maipu; www.cti.cl) as well as CTI’s 78.5% stake in appliance manufacturer Somela. Subsequently, Electrolux will commence a cash tender offer to acquire 100% of the Chilean group, which it values at around EUR 480m. CEO Keith McLoughlin said the combined business will generate “significant revenue and cost synergies.”

In Chile, CTI claims a combined market share of 36% for its refrigerators, stoves, washing machines and heaters sold under the brand names “Fensa“ and "Mademsa”. Somela is said to be the largest small appliances manufacturer in the country. In Argentina, the wholly-owned subsidiary Frimetal claims market leadership for its “GAFA” brand appliances. The consolidated Chilean group with 1,200 employees had sales of around EUR 315m in 2010 and EBITDA of just under EUR 50m.

In another bid, initiated in late 2010 but suspended due to the political turmoil in Egypt, Electrolux is pressing ahead with plans to take over an initial 52% of appliance manufacturer Olympic Group (Cairo / Egypt; www.olympicgroup.com) for nearly EUR 228m, including debt, from Egyptian private equity investor Paradise Capital Holding. A cash tender offer for the outstanding shares of the company touted to be market leader in the Middle East and Africa will follow here, too.

Olympic, which employs 7,300 people and reported sales of EUR 270m in 2010, produces a range of both large and small domestic appliances. Electrolux has a marketing partnership with the Egyptian company dating back to 1982.
25.08.2011 Plasteurope.com [220177-0]
Published on 25.08.2011
Electrolux: Hausgerätehersteller kauft in Ägypten und Chile zuGerman version of this article...

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