De’ Longhi has agreed to buy from its parent company a stake in high-end espresso machine manufacturer La Marzocco as it bets on coffee to pep up growth.
Milan-listed De’ Longhi will spend $374 million to acquire 41.2% of La Marzocco from De’ Longhi Industrial, its parent company, as well as from other minority shareholders, to create a hub with its existing Eversys coffee machine-making operation.De’ Longhi will control around 61.4% of the new hub which will see the two companies remain independent, while reaping benefits in terms of savings and chances to cross sell products.