Merloni Elettrodomestici announced that it has signed an agreement to acquire 50 per cent. of GDA (General Domestic Appliances), the UK’s leading manufacturer of domestic appliances through its Hotpoint brand. Merloni Elettrodomestici, whose primary brands are Ariston and Indesit, will acquire the stake from Marconi while the American company General Electric owns the remaining 50 per cent. of the company. The consideration for the transaction amounts to Euro 195.5 million on a debt free basis.General Domestic Appliances operates mainly in the UK and in Ireland with revenues of approximately Euro 810 million for the year ended 31st March 2001 and accounts for 23 per cent. of the domestic appliances sold in the UK. The Hotpoint brand is complementary to Merloni's Ariston and Indesit brands. GDA has four plants in the UK: Peterborough, which is also the headquarters of the company and produces refrigerators and freezers; Blythe Bridge, which produces kitchen equipment; Kinmel Park, which produces washing machines; and Yate, which produces tumble dryers. The product lines are complementary with Merloni’s industrial plants.
GDA designs, produces, distributes and provides services assistance for a wide range of household appliances including dishwashers, spin and tumble dryers, refrigerators and cooking appliances. Its primary brand is Hotpoint, the leading brand in the UK, the country with the largest share of, and fastest growth in, the European domestic appliances market.
The Chairman of Merloni Elettrodomestici, Vittorio Merloni, said:
“After our recent investments in Eastern Europe, Merloni will strengthen its presence in Western Europe through this transaction. We chose Hotpoint because of its strong brand and of the profitability of the company.”
January.2001
Merloni Elettrodomestici
Hotpoint
GeneraI Domestic Appliances
