By Adam Coleman
SYDNEY: Fisher & Paykel Appliances has acquired Italian based cooking appliance manufacturer Elba Spa, from De' Longhi Spa for approximately $A132 million, in a bid to expand its product offering both in Europe and locally.
Based near Treviso, Italy, Elba manufactures and distributes cooking appliances including freestanding cookers, built-in ovens and cooktops to over 54 countries worldwide, with particular strength in the UK.
Fisher & Paykel can now market and distribute three cooking brands in Europe, the now wholly owned Elba along with De' Longhi and Kenwood under a 20 year licence.
De' Longhi Australia will continue to sell De' Longhi branded major cooking appliances in the Australian market.
While the acquisition is predominantly aimed at Fisher & Paykel’s strategic growth in Europe, it will also enable the company to source products, market and compliment its range of kitchen appliances in the Australian market.
According to Fisher & Paykel Australia CEO, Mike Church, a new range of Fisher & Paykel branded cooking appliances sourced from the Elba facility could be on the market within three to five months, which will be clearly differentiated from De' Longhi products sourced under licence from the same factory.
“Out of the Elba facility, they are currently manufacturing products that we don’t make ourselves, for example 900mm wall ovens and freestanding cookers particularly in that 900 segment. We will utilise the fact that we now have those products at our beck and call,” Church told current.com.au.
De' Longhi Spa currently distributes Elba products in Australia under the De Longhi brand, and this will continue.
“De’ Longhi Australia, De’ Longhi New Zealand and De’Longhi Italy will remain the exclusive distributor of the Elba products branded De’Longhi and therefore it will be very much business as usual,” Delonghi Australia CEO, Paolo Albertoni told current.com.au.
By selling Elba, De’ Longhi will be able to focus on its seasonal products and small domestic appliance business including coffee machines and the Kenwood brand.
"The divestment of Elba is in line with De' Longhi's strategy to focus and foster growth in its key product categories of heating, air conditioning, food preparation, cleaning and ironing,” De' Longhi CEO, Fabio De' Longhi said.
Elba’s manufacturing facilities are located in Basso Del Grappa, near Treviso in Northern Italy and the current output is around 390,000 units with sales of $A143 million.
The existing management team at the factory will continue to operate the business with support from Fisher & Paykel.
"We are delighted to have successfully completed the acquisition of Elba. Now that our US strategy is in place, the Elba acquisition provides us with the platform to achieve strategic growth in Europe,” said Fisher & Paykel managing director and CEO, John Bongard.
“The acquisition will also provide further geographical diversification for us, balancing our exposures to the US, Australian and New Zealand markets.
“Elba is a well run, flexible cookware facility that will provide us with products and customers to help grow the sales of Fisher & Paykel and De' Longhi products in our key markets including Europe and the UK,” Bongard said.