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Johannesburg - Turkey's Arcelik Group announced on Thursday that it had entered into an agreement to acquire Defy Appliances, the leading home appliances manufacturer in southern Africa, from Franke Holding for an undisclosed sum.
Arcelik Group belongs to the largest conglomerate in Turkey, Koc Group, which operates in four core industries - energy, automotive, consumer durables and finance - and is listed as the only Turkish company on the Fortune Global 500 list.
Arcelik Group has about 19 000 employees worldwide, 11 production plants in Turkey, Romania, Russia and China, and sales and marketing offices in 18 countries. Its portfolio includes nine brands.
The acquisition of Defy is subject to obtaining the necessary regulatory approvals and fulfilment of other conditions precedent, which are expected to be finalised in September, following which closing is expected to occur.
Defy has been operating in the consumer durables and consumer electronics sector for almost 100 years. The company recorded net sales of about R2.5bn in 2010.
Mustafa V Koc, the chairperson of Koc Holding, said that the group's investment in SA would seek to further strengthen the global position of Arcelik Group.
"This investment is a significant step taken in the African continent, in line with the growth plans of Koc Holding and Arcelik Group in global markets. I firmly believe that through this acquisition Arcelik will strategically position itself in the African continent, which I believe offers a high growth potential.
"Koc Holding will continue to give support to the acquisition opportunities for Arcelik in the framework of its global growth plans, as before," he said.
Arcelik Group achieved a consolidated turnover of €3.5bn, with international sales of €1.8bn in 2010.
Ross Campbell Heron, the CE of Defy, noted that the acquisition offered Defy exciting prospects, involving the further development of the company's manufacturing base and the expansion of its markets in sub-Saharan African.
Arcelik Group belongs to the largest conglomerate in Turkey, Koc Group, which operates in four core industries - energy, automotive, consumer durables and finance - and is listed as the only Turkish company on the Fortune Global 500 list.
Arcelik Group has about 19 000 employees worldwide, 11 production plants in Turkey, Romania, Russia and China, and sales and marketing offices in 18 countries. Its portfolio includes nine brands.
The acquisition of Defy is subject to obtaining the necessary regulatory approvals and fulfilment of other conditions precedent, which are expected to be finalised in September, following which closing is expected to occur.
Defy has been operating in the consumer durables and consumer electronics sector for almost 100 years. The company recorded net sales of about R2.5bn in 2010.
Mustafa V Koc, the chairperson of Koc Holding, said that the group's investment in SA would seek to further strengthen the global position of Arcelik Group.
"This investment is a significant step taken in the African continent, in line with the growth plans of Koc Holding and Arcelik Group in global markets. I firmly believe that through this acquisition Arcelik will strategically position itself in the African continent, which I believe offers a high growth potential.
"Koc Holding will continue to give support to the acquisition opportunities for Arcelik in the framework of its global growth plans, as before," he said.
Arcelik Group achieved a consolidated turnover of €3.5bn, with international sales of €1.8bn in 2010.
Ross Campbell Heron, the CE of Defy, noted that the acquisition offered Defy exciting prospects, involving the further development of the company's manufacturing base and the expansion of its markets in sub-Saharan African.
