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- Global coffee and appliance company Breville Group (BRG) finalises an agreement to acquire Italian-based prosumer specialty coffee group LELIT, effective from today
- The total transaction is said to be approximately €113 million (A$173 million), half in cash from existing cash reserves and debt facilities and half by the issue of fully paid BRG shares priced at $27.64 per share
- BRG have said the acquisition strategically complements Breville’s ‘award-winning’ coffee portfolio as LELIT’s range of espresso machines and grinders creates an increasingly strong presence in the specialty coffee channel
- A pre-acquisition restructure of the LELIT Group has commenced, with key members and the founders of LELIT joining the Breville Group
- In light of this announcement, BRG shares dipped 2.04 per cent and were trading at $26.43 per share
Global coffee and appliance company Breville Group (BRG) have announced its finalised agreement to acquire Italian-based prosumer specialty coffee group LELIT, effective from today.
A pre-acquisition restructure of the LELIT Group has commenced, with key members and the founders of LELIT joining the Breville Group, and the transaction is expected to be complete by early July 2022.
The total transaction is said to be approximately €113 million (A$173 million), subject to customary settlement adjustments.
Half of the consideration will be paid in cash, funded from existing cash reserves and debt facilities, and half by the issue of fully paid BRG shares priced at $27.64 per share and will be subjected to a five-year trading lock post-completion.
BRG said the acquisition strategically complements Breville’s ‘award-winning’ coffee portfolio as LELIT has been a rapidly growing disrupter in the premium Italian-made espresso machine and grinder market.
“The acquisition of LELIT brings together the two great coffee cultures of the world: Italy and Australia,” said Breville Group CEO Jim Clayton.
LELIT’s range of espresso machines and grinders creates an increasingly strong presence in the specialty coffee channel and BRG’s global presence will “[provide] LELIT with an immediate opportunity to strengthen its presence outside of Europe”.
“Both companies have a shared passion for using product innovation to improve our customers’ coffee experience at home, and we look forward to working alongside LELIT and its existing partners to further accelerate its growth and product innovation, while preserving the values that underpin its Italian identity,” Mr Clayton said.
In light of this announcement, BRG shares have dipped 2.04 per cent and were trading at $26.43 per share at 10:52 am AEDT.
