The Italian company De’Longhi announced it reached an agreement with affiliates of Centre Lane Partners to acquire the American company Capital Brands.
Founded in 2003 and headquartered in Los Angeles, California, Capital Brands develops and sells domestic appliances with a focus on wellness nutrition to households in over 100 markets worldwide under the Nutribullet® and Magic Bullet® brands. The company has successfully created the personal blenders segment, within the broader blenders category – which is estimated to be worth ca. 1.1 billion dollar in the USA – and has become one of the category leader in North America and in other key markets around the world such as Australia, New Zealand and the UK.
«This acquisition is a perfect fit for the De’ Longhi Group – Massimo Garavaglia, CEO of the company comments – 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.»
Capital Brands forecasts net revenues of approximately 290 million dollar for year 2020, ahead of last year sales. With this transaction, the United States become the largest market for the De’ Longhi Group, with aggregate turnover in excess of 500 million dollar.
«We are very pleased to be joining the De’ Longhi Group – Rich Krause, CEO of Capital Brands said – 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.»
