Italian household appliance company De’ Longhi has agreed to acquire Capital Brands Holdings, manufacturer of brands such as NutriBullet and Magic Bullet, for approximately $420 million.
Having cornered the personal blenders market, Capital Brands predicts net revenues of around $290 million for 2020.
With this transaction, the US will become the largest market for De’ Longhi, with an aggregate turnover of more than $500 million.
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”.
“Moreover, it represents a strategic value from several viewpoints: we add a young and dynamic brand to our portfolio; we enlarge 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 USA; and last, but not least, we strengthen the De’ Longhi Group’s leadership in the sector of food preparation,” he continued.
Rich Krause, CEO of Capital Brands, added: “We are very pleased to be joining the De’ Longhi Group and to have the opportunity to align our strong brands with theirs. 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.”
Completion of the transaction is expected to take place before the end of 2020.
