Elica, a company listed on Euronext Star Milan and active in the production of kitchen hoods and cooker hobs, announces that it has signed today the acquisition of the residual 0.56% of the share capital of Elica Home Appliances (Zhejiang), better known as Putian, from FUJI Industrial Co.,LTD already a partner of Elica in the Japanese JV Ariafina. The operation, explains the note from the Fabriano (AN) company, is part of the project of "transformation of the Chinese company into a strategic sourcing and production hub for the Group's companies only, serving the development strategy of the Cooking business in Emea and direct expansion in the North American market", which remain the priority areas of investment in the three-year period 2025-2027.

In detail, the official note highlights, with the operation signed today, Elica has acquired from Fuji Industrial Co., Ltd the residual share of 0.56% of the share capital of Putian, thus acquiring total control. The agreed price corresponds to the amount originally paid by Fuji when it entered Putian in 2012, equal to 1,997,802.78 euros and is consistent with the initial agreements and with the path of the joint venture, managed independently by Elica, also through recapitalization operations.

The amount represents a balanced solution with respect to the roles played by the parties and the agreements underlying the collaboration. The payment will be made by Elica in two installments: a first installment of 1 million euros will be paid by the end of July 2025, while the remaining portion will be paid in January 2026.

The acquisition is entirely financed with own funds and is part of the plan to optimize Elica's international structure. The completion of the operation is subject to the approval of the competent Chinese authorities and the completion of the related administrative formalities and is expected by July 2025. The strategic partnership with Fuji continues in Japan through the Ariafina brand, leader in the premium aspiration segment.

"With this operation we complete a journey that began in 2021 with the turnaround of our presence in China, which allowed us to bring Putian back to the break-even threshold after years of negative results - declares Giulio Cocci, CEO of Elica Spa -. The decision to acquire 100% of the capital and to redefine its role in a strategic way now allows us to maximize the value of the local industrial infrastructure, transforming it into a sourcing hub functional to the needs of the Group".

Putian, which underwent an effective turnaround between 2021 and 2022, has reached the break-even threshold in recent years. However, in light of local competitive dynamics, the complex geopolitical scenario, the very high service costs of the Chinese market and the strategic focus on other geographical dimensions, Elica has decided to redefine the role of Putian, transforming it into a specialized sourcing hub.

The project will include:

• the interruption of commercial activities under the Puti and Elica brands in the Chinese market and the consequent corporate reorganization;
• the procurement of components and finished products to complete the offering in Europe and North America;
• maintaining local production limited to specific product families to complete the range for the EMEA markets.

This transformation, the company's note underlines, will generate an estimated positive contribution of approximately 1 million Euro on an annual basis.

"Putian will be dedicated to the supply of components and products to support our ranges for Europe and North America - adds Luca Barboni , managing director of the Cooking division of Elica Spa - This is a choice that improves operational efficiency, frees up resources and further strengthens the focus on key assets for our growth".

Putian closed 2024 with revenues of 8.6 million euros (from 15.7 million in 2018, 13.2 million in 2019, 10.3 in 2020, 10.2 in 2021, 11.1 in 2022 and 9.8 in 2023). The 2024 EBITDA was equal to 700 thousand euros (from 300 thousand euros in 2018, 400 thousand euros in 2019, -1.1 million euros in 2020, 1.2 million in 2021, 200 thousand euros in 2022, 1.3 million in 2023).