Groupe SEB acquires WMF.
Worldwide housewares giant Groupe SEB just got bigger with its purchase of German manufacturer WMF last month. With WMF, Groupe SEB looks to solidify its place in the professional coffeemaker market, as well as bolster its already strong cookware position.
Groupe SEB purchased WMF from private equity firm KKR for approximately $1.76 billion. Approval is expected to occur in the second half of 2016.
"The acquisition of WMF is a new structuring step in our development," said Thierry de La Tour d'Artaise, Groupe SEB chairman and CEO. "It allows us to significantly reinforce our positions in small domestic equipment in Germany and add very strong brands to our portfolio. Furthermore, it is a fantastic opportunity to become a leading player in the very attractive professional coffee machine market and to capitalize on WMF's cutting-edge technologies to enrich our small domestic equipment product offering. We have high respect for this great company with which we share culture and values, based on a passion for products and an obsession for excellence."
WMF has a market share of 28 percent in the global professional coffeemaker market, far ahead of the number two spot, according to Groupe SEB. In Germany, WMF leads the cookware category with 20 percent of the market.
Besides the WMF brand, WMF, founded in 1853, owns the Schaerer, Silit, Kaiser and HEPP brands. Groupe SEB also plans to leverage the 200 retail shops that WMF runs in Germany. WMF has eight production sites worldwide, of which four are in Germany.
In 2015, Groupe SEB revenues, including WMF, would have been $6.49 billion with an adjusted EBITDA of $726 million, representing a margin of 11.2 percent.
BY ANDREA LILLO
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|Title Annotation:||HOUSEWARES FRONT PAGE|
|Publication:||HFN Home Furnishings News|
|Date:||Jun 1, 2016|
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