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De′ Longhi acquires Capital Brands for $420 million

US first market of the Group, aggregate turnover $500 million

De 'Longhi has reached an agreement with the affiliates of Center Lane Partners to acquire Capital Brands Holdings, Inc., one of the leading companies in the personal blenders segment with the Nutribullet and Magic Bullet brands. Founded in 2003 and headquartered in Los Angeles, California, the company develops and sells home appliances with a focus on nutrition for family well-being in over 100 markets around the world. The blender category in the United States alone is estimated at around $ 1.1 billion. Capital Brands estimates net revenues of approximately 290 million dollars for the year 2020, up compared to 2019. With this transaction, the United States becomes the first market for the De 'Longhi group, with aggregate turnover exceeding 500 million dollars. dollars.

Massimo Garavaglia, CEO of the Treviso-based company, comments: "This acquisition is perfect for the Group and is in line with our objectives of geographical expansion and growth by external lines. Furthermore, this transaction takes on strategic value from several points of view. : we add a young and dynamic brand to our portfolio; we expand our range of iconic products with an important presence in the blender segment; we increase our penetration in an expanding and strategically important market like the United States; finally, no less important aspect , we strengthen the Group's leadership in the food preparation sector".

Rich Krause, CEO of Capital Brands, said: "We are excited about the future growth opportunities that we will be able to exploit in the US and internationally with the support of our new shareholder." With its research and development centers in Boston and Connecticut, the American company brings with it an innovative technology in the development of products inspired by an evolved concept of nutrition, which will help accelerate the growth of the Italian group in the world of 'healthy food.

The agreed price is approximately $ 420 million, equal to a multiple of the adjusted Ebitda expected for 2020 of just over 8 times. The consideration for the transaction will be paid by drawing on the Group's liquidity reserves. The transaction is expected to be accretive as early as next year, while the closing of the transaction is expected by the end of 2020. De 'Longhi was advised by BofA Securities, White & Case and Ernst & Young, while Center Lane Partners are were advised by Goldman Sachs and PJ Solomon.

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EFA News - European Food Agency