The $374m deal will see La Marzocco and Eversys combine forces in a single business group with each remaining independent and retaining current management structures
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The enterprise value of the transaction is equal to $1.4bn, according to De’Longhi | Photo credit: Andrew Spencer
De’Longhi has announced plans to create a new global business group comprised of the La Marzocco and Eversys brands. The combination will bring together two of the world’s most respected coffee machine manufacturers to create a formidable new business group within De’Longhi’s coffee segment.
The terms of the deal will see Milan-based De’Longhi S.p.A. take a 41.2% stake in La Marzocco from its parent company De’Longhi Industrial S.A. for $374m.
With a forecast combined turnover of approximately €372m ($409m) and an adjusted EBITDA of €87m ($96m) in 2023, De’Longhi said the move will create synergies and cross-selling opportunities, including in the fields of research, production and market development. It will also advance the Italian manufacturer’s position in the super automatic and traditional espresso machine markets, as well as the luxury household segment.
Coffee accounted for nearly 60% of De’Longhi’s total 2023 third quarter revenues, driven by strong sales growth for Eversys.
De’Longhi’s Board of Directors reported the enterprise value of the transaction is equal to $1.4bn, based on valuations of $907.7m for La Marzocco and $494.6m for Eversys. De’Longhi will control approximately 61.4% of the new corporate structure, with the acquisition expected to complete in the first quarter of 2024.
“I am extremely satisfied with this transaction which creates a world leader in the professional coffee machine industry and a centre of technological innovation without equal in the world of coffee. The transaction represents a fundamental step to further consolidate our leadership in coffee, especially in the premium segment of the market, both consumer and professional, and was made possible by the robust cash generation that has characterised our group in recent years,” said Fabio de’ Longhi, CEO and Vice President of De’Longhi.
Both La Marzocco and Everys will remain independent and directly led by their current management to ensure the continuity of leadership and to preserve ‘distinctive corporate cultures’.
La Marzocco has been led by CEO Guido Bernardinelli since 2018, while Eversys is currently headed by Martin Strehl.
De’Longhi completed its acquisition of Eversys for CHF 150m ($164m) in May 2021, purchasing the remaining 60% stake in the business to add to the 40% it acquired in June 2017. De’Longhi Industrial S.A. became a majority shareholder in La Marzocco in May 2021.