DeLonghi has reached a definitive agreement with affiliates of Centre Lane Partners to acquire Capital Brands Holdings, Inc., a leader in the personal blenders segment with the Nutribullet and Magic Bullet brands.
The price payable by DeLonghi for Capital Brands is approximately $420 million. The closing of the transaction is expected to take place before the end of 2020.
With its research and development centers in Boston and in Connecticut, Capital Brands brings innovative technologies to the development of products that cater to an evolved concept of nutrition, the company said. Centre Lane Partners acquired Capital Brands in 2018. Nutribullet and Magic Bullet are highly recognizable brands that have earned a strong reputation among consumers. Capital Brands’ strengths and expertise will contribute to accelerate DeLonghi Group’s growth in the world of healthy foods, the company added.
Massimo Garavaglia, CEO of DeLonghi, said, “This acquisition is a perfect fit for the DeLonghi Group and is consistent with our objectives of geographical expansion and growth by external lines. Moreover, it represents a strategic value from several viewpoints: we add a young and dynamic brand to our portfolio; we enlarge our range of iconic products with an important presence in the blender segment; we increase our penetration in an expanding and strategically important market like the USA; and last, but not least, we strengthen the DeLonghi Group’s leadership in the sector of food preparation.”
DeLonghi Group owns such brands as DeLonghi, Braun, Kenwood and Ariete.
Founded in 2003 and headquartered in Los Angeles, Capital Brands develops and sells domestic appliances with a focus on wellness nutrition to households in over 100 markets worldwide under the Nutribullet and Magic Bullet brands. Capital Brands forecasts net revenues of approximately $290 million for year 2020, ahead of last year sales. With this transaction, the U.S. become the largest market for the DeLonghi Group, with aggregate turnover in excess of $500 million.
Rich Krause, CEO of Capital Brands, said, “We are very pleased to be joining the DeLonghi Group and to have the opportunity to align our strong brands with theirs. We are excited about the future growth opportunities that we will be able to exploit in the U.S. and internationally with the support of our new shareholder.”