Fagor Now Controls ElcoBrandt After Agreement with Elco (4/19)
Notice of the agreement, which was signed yesterday by Pablo Mongelos, General Director of the Fagor Electrodomésticos Group, and Michael Salkind, Managing Director of Elco Holland BV, was sent this morning to the National Stock Market Commission. The agreement is subject to the approval of the Antitrust authorities, which will issue a verdict in the coming weeks. The acquisition of Brandt is to be financed with Fagor's own resources (27%), contributions from MCC Inversiones and MCC Desarrollo (18%) and external credit (55%).
The company ElcoBrandt was incorporated in 2002 after the court of Nanterre awarded the assets and brands of the French Brandt group to a proposal submitted jointly by Elco and Fagor Electrodomésticos. In the resulting company - ElcoBrandt - the Israeli group held 90% of the shares and Fagor the remaining 10%.
For the last three years, the company's new managers have been implementing an ambitious restructuring plan, thanks to which Brandt has consolidated its position as French white-goods market leader with a market share in excess of 18%.
Brandt's sales in 2004 totalled 813 million euros, nearly 40% of which came from international sales. It has a workforce of 4700 distributed in five industrial plants in France (Orléans, Vendôme, Aizenay, La Roche-sur-Yon and Lyon), one in Italy (Verolanuova) and five subsidiaries (United Kingdom, Denmark, Italy, Switzerland and Singapore). On aggregate the plants have the capacity to produce more than 3.5 million electrical appliances. The chief brands are Brandt, leader in the French market and a major international name; DeDietrich, one of the leading brands in the fitted appliance market; Thomson (white goods); Vedette, Sauter and Italian brands SanGiorgio, Ocean and Samet. Thanks to these brands, Brandt has a commercial presence in almost 100 countries on all five continents.
For its part, Fagor is the leading Spanish electrical appliance maker, the sixth European group in terms of sales turnover and the seventh in terms of market share. At 31 December 2004 its workforce stood at 6230, distributed in ten production plants on three continents and 14 subsidiaries giving it outlets in 82 countries. It works with the brands Fagor, Edesa and Aspes, each of which is the Spanish market leader in its segment, and with the leading Polish cooker brand Mastercook.
With the acquisition of Brandt, Fagor is now the fifth largest European electrical appliance manufacturer, with more than 5.8% market share and sales turnover forecast at around € 1800m in 2005 and € 2000m in 2006, which will be the first complete business year post-acquisition. The total workforce will be approximately 11,000, serving in 16 production plants in six countries (four in Europe, one in Africa and one in Asia). It will have sales outlets in 100 countries throughout the world, where it will operate with twelve brands (Fagor, Edesa, Aspes, Mastercook, Brandt, DeDietrich, Thomson, Vedette, Ocean, SanGiorgio, Sauter and Samet).
New structure With a view to defining the new strategy and setting it in motion, a Strategy Committee has been created with the tasks of introducing and implementing the business plan, taking advantage of and generating synergisms and defining the future organisation of the Fagor Electrodomésticos Group.
In order to implement this project and adapt the group's structure to its new dimension, the top management has been remodelled and will henceforth be composed as follows:
Strategic project With the acquisition of Brandt, Fagor have made a strategic decision to opt for a forward-looking business plan on a European scale, with the capacity to position itself successfully in markets throughout the world.