ITALY – Italian household appliance company De’ Longhi has agreed to buy California-based domestic appliances group Capital Brands Holdings for approximately US$420 million.
Founded in 2003 and headquartered in Los Angeles, Capital Brands is a leader in the personal blenders segment with its Nutribullet and Magic Bullet brands being the most popular among consumers.
The company sells domestic appliances with a focus on wellness nutrition to households in over 100 markets worldwide.
It forecasts net revenue of around US$290 million for year 2020, ahead of last year sales.
Commenting on the acquisition, Massimo Garavaglia, CEO of De’ Longhi, said: “This acquisition is a perfect fit for the De’ Longhi Group and is consistent with our objectives of geographical expansion and growth by external lines”.
Indeed, De’ Longhi anticipates that the deal would make the United States, with an aggregate turnover of more than US$500 million, its largest market.
It also noted that with the deal, it would be able to bolster its position in the food preparation sector, especially in the growing healthy food segment.
With its research and development centers in Boston and in Connecticut, Capital Brands brings innovative technologies to the development of products that cater to an evolved concept of nutrition, the company said.
On his part, Rich Krause, CEO of Capital Brands, said, “We are very pleased to be joining the DeLonghi Group and to have the opportunity to align our strong brands with theirs.”
The DeLonghi brand started over a century ago in Treviso, Italy, as a spares workshop and has gradually grown over the years into a multi-billion dollar company specializing in high-end coffee makers and espresso machines.
According to Forbes, De’Longhi SpA rakes in over $2 billion in annual revenue and sells products in more than 100 countries.
Today the company makes a wide range of products including portable heaters, air conditioners, appliances for food preparation, cleaning tools and coffee machines.
It’s acquisition of Capital Brands Holdings from private equity firm Center Lane Partners adds another line of premium brands to its famous brands which include DeLonghi, Braun, Kenwood and Ariete.
Completion of the transaction is expected to take place before the end of 2020.
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