Arcelik has announced that it is going to acquire Dawlance

Turkish company Arcelik has announced  that it is going to acquire Dawlance for a sum of $258 million. The take-over will also be accompanied by the purchase of minority stakes and transferring of land and buildings to the ownership of the Turkish company and is expected to be completed by the end of current calendar year.

The CEO of Koc, while announcing this, said, “Consolidating the vision of our group, Arçelik has made a significant investment in Pakistan in line with its global growth strategy. I believe this investment will further strengthen Turkey-Pakistan economic ties. Through the incorporation of Dawlance into our group, we will gain a strong and strategic foothold in Pakistan, a promising economy.”

The reasons for acquisition still remain untold but it has been reported that the owner of Dawlance wanted to permanently move abroad and that the company was up for auction since last 5 years.

Major shares of Dawlance are owned by Bashir Dawood who is the brother-in-law of Hussain Dawood, the owner of Dawood Group. Dawood Group has major share presence in HUBCO, Engro and Dawood Hercules groups.

Arçelik A.Ş. is a household appliances manufacturer from Turkey. The Company engages in the production and marketing of durable goods, components, consumer electronics and after-sale services. Its products include white goods, electronic products, small home appliances and kitchen accessories, such as refrigerators, freezers, washing machines, dishwashers, aspirators, vacuum cleaners, coffee makers and blenders.

Arçelik A.Ş. is active in more than 100 countries including China and the United States through its 13 international subsidiaries and over 4,500 branches in Turkey. The Company operates 15 production plants in Turkey, Romania, Russia, China, South Africa and Thailand including refrigerator, washing machine, dishwasher, cooking appliances and components plants. It offers products under its own  brand names, including Arçelik, Beko, Grundig, Altus, Blomberg, Arctic, Defy, Leisure, Arstil, Elektra Bregenz and Flavel.

The company is controlled by Koç Holding, Turkey’s largest industrial and services group with USD43 billion in consolidated revenues in 2008, and is the market leader in Turkey’s appliance sector with its Arçelik and Beko brands. Its top executives are Aka Gündüz Özdemir, Durable Goods President of the Koç Group, and General Manager Levent Çakıroğlu.

Dawlance is a privately-owned company of white goods in Pakistan which was founded in Karachi in 1980. It has two manufacturing sites in Karachi and one in Hyderabad and boasts about 3,000 staff members. The company has a significant foothold in white goods manufacturing domains and even exports some of its goods abroad. As per the available data, Dawlance Group had revenues of $220.6 million in 2015.

The acquisition of Dawlance is surely going to give Arcelik’s presence in Pakistan a major boost as with 37 branches 750+ franchises, Dawlance has a widespread outreach across the country. Dawlance is the largest microwaves and refrigerator market shareholder with 70% and 45% market share respectively.

 

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