The Dutch group has finalized an acquisition deal with the long-standing Italian coffee machine manufacturer.
Royal Philips Electronics has closed the acquisition of Saeco International Group spa, one of the world leaders in the espresso machine market. The announcement from the Philips headquarters in Amsterdam follows an agreement reached with the private equity fund Pai Partners in May. Philips has acquired full ownership of Saeco with an investment of 170 million euro, with an additional 30 million due “dependent on certain conditions”.
Saeco has 950 employees and achieved sales of 318 million euro over the 12 months ending in March. The company’s headquarters and main industrial sites are based in Gaggio Montano, in the Apennine hills near Bologna, and Romania, with subsidiaries in Europe, the US, Latin America, Australia and Asia. “Through this acquisition, we are set to become a new global leader in the coffee machine market with excellent prospects for future growth”, said Andrea Ragnetti, Chief Executive Officer of Philips Consumer Lifestyle and Philips Board member. Saeco has a total of around 2000 employees, half in Italy and the rest overseas. Under the terms of the acquisition, all Philips R&D into coffee machines will be carried out at Saeco’s headquarters in Gaggio Montano, while Saeco’s Chief Executive Federico De Angelis will become head of production within this segment for the whole Dutch group.
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