16657 Tue, 07/28/2009 - 12:16pm
AMSTERDAM, The Netherlands–Royal Philips Electronics has closed the acquisition of Saeco International Group, a deal that gives the industrial giant a foothold in the market for espresso machines.
Under the terms of the agreement, which was approved by the European Commission, Philips has paid about $241.9 million for full ownership of Saeco, plus the assumption of all outstanding senior debt and related financial instruments. A Philips statement mentioned an additional payment of about $42.7 million “which is dependent on certain conditions.” Saeco will become part of Philips’ domestic appliances business unit within the Philips Consumer Lifestyle sector, joining the Senseo brand of single-serve gourmet coffeemakers as part of Philips’ offering in this category.
The statement said the Saeco purchase strengthens Philips’ coffee-machines business, adding, “The espresso-machine segment is generally regarded as the most valuable market space within the global coffee-appliances market, as it typically achieves double-digit sales growth and profit margins.”
“With Saeco, we acquire a company with massive experience and credibility in the espresso-machine market and a strong management team which has agreed to stay on following this acquisition,” said Andrea Ragnetti, chief executive officer of Philips Consumer Lifestyle.
The Saeco team is headed by CEO Federico De Angelis, who said the acquisition should “substantially strengthen our espresso-machines business.”