Philips says it is on course to become a global leader in coffee machines with the completion of its purchase of Italian espresso machine maker Saeco.
In a statement, Philips said: “The acquisition of Saeco will significantly strengthen Philips’ coffee machines business, which currently holds a leading position in drip-filter and single-serve (Senseo) products.
“The espresso machine segment is generally regarded as the most valuable market space within the global coffee appliances market, as it typically achieves double digit sales growth and profit margins.”
The deal, worth 170m Euros, will see all the cash being paid to Saeco’s creditors, believed to be its banks. An additional 30m Euros will be paid but is “dependent on certain conditions”.
Along with Saeco-branded machines, the company manufactures Gaggia and Lavazza coffee makers. It is the biggest maker of espresso machines in Europe, and had a 318m Euro turnover in the year to March 31. Saeco will now become part of the domestic appliances unit within Philips’ consumer lifestyle sector.
Philips says it will be launching a completely new range of Saeco espresso machines from next month.