As a part of its strategy to grow in emerging markets, Electrolux will acquire Sigdo Koppers’ controlling stake in Compañia Tecno Industrial S.A (CTI). The acquisition makes Electrolux the largest supplier of appliances in Chile and Argentina.
Sigdo Koppers and select associated parties have agreed to sell their controlling interest in CTI to Electrolux. Electrolux will also commence a cash tender offer to acquire all of the outstanding shares of CTI’s subsidiary, Somela.
In Chile, CTI manufactures refrigerators, stoves, washers and heaters that are sold under the Fensa and Mademsa brands and is the leading manufacturer with a volume market share of 36 percent. Through its wholly owned subsidiary Frimetal, it also holds a leading position in Argentina with the GAFA brand. Somela is the largest supplier of small domestic appliances in Chile.
“This acquisition builds on the strengths of Electrolux and CTI and provides significant growth opportunities that would be difficult to achieve by either company individually. Together we will generate significant revenue synergies and cost synergies relating to purchasing and production,” said Keith McLoughlin, president and CEO of Electrolux. “Latin America is important to our growth plans and we believe there will be a successful path ahead for the combined forces of Electrolux and CTI.”
Pictured: Electrolux’s 18-in. dishwasher (Model EIDW1805K S)
