De’Longhi SpA has announced the business combination of coffee machine manufacturers Eversys and La Marzocco to further accelerate the expansion and diversification strategy of the De’ Longhi Group.
The transaction involves the creation of a new corporate structure controlled by De’Longhi SpA, with the related contribution of Eversys, the acquisition by De’Longhi SpA of shares of La Marzocco International LLC from De Longhi Industrial S.A., and from minority shareholders for approximately 41.2 per cent of the share capital.
The remaining shares of La Marzocco will also be contributed to the new corporate structure by the shareholders.
“I am extremely satisfied with this transaction, which creates a world leader in the professional coffee machine industry and a centre of technological innovation without equal in the world of coffee,” says De’Longhi CEO and Vice President Fabio de’ Longhi.
“In particular, I am satisfied with the full participation of the management and minority shareholders of La Marzocco in this deal, creating continuity and strengthening, to a greater extent, the worth of this project.”
De’Longhi is aiming to create a hub in the professional coffee industry, with La Marzocco and Eversys creating synergies and cross-selling opportunities.
The De’Longhi group will control approximately 61.4 per cent of the new hub, while minority shares will be held by De’Longhi Industrial S.A. (approximately 26.6 per cent) and by the current minority shareholders of La Marzocco (approximately 12 per cent).
Both Eversys and La Marzocco will remain independent and directly led by the current management in order to guarantee managerial continuity and preserve corporate cultures.
“La Marzocco and Eversys, while continuing to maintain their distinct identities, will be able to count on the full financial and organisational support and control of the De’Longhi Group,” says de’ Longhi.
The transaction has an expected aggregate turnover, on a pro-forma basis, of approximately €372 million (about US $406 million) in 2023, and an adjusted Ebitda (earnings before interest, taxes, depreciation, and amortisation) of approximately €87 million (about US $95 million) before synergies.
“Today’s transaction therefore represents a fundamental step to further consolidate our leadership in coffee, especially in the premium segment of the market, both consumer and professional, and it was made possible by the robust cash generation that has characterised our group in recent years,” says de’ Longhi.
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