De’Longhi Group is creating what it calls a “business combination” between Italian espresso machine giant La Marzocco and Swiss super-automatic coffee machine maker Eversys.
The transaction, announced late last month and expected to close this financial quarter, involves the creation of a new corporate entity controlled by Italy-based De’Longhi SpA, a De’Longhi Group company, in which La Marzocco and Eversys will combine to create a new business “hub” focused on coffee machine development and sales.
De’Longhi said the deal will “be able to create synergies and cross-selling opportunities,” for La Marzocco and Eversys. The organization added that both La Marzocco and Eversys “will remain independent and directly led by the current management, in order to guarantee managerial continuity and preserve the distinctive corporate cultures.”
De’Longhi Group acquired a 40% stake in Eversys in 2017 before purchasing a 100% stake in the company in 2021.
However, the deal shines new light on existing investments by De’Longhi affiliates in La Marzocco, a pioneering coffee equipment technology based in Florence, Italy, since 1927.
In 2021, the De’Longhi Group issued a statement refuting a report from a leading Italian newspaper that the group or its affiliates were involved in equity participation in La Marzocco. Yet the new deal highlights the fact that De’Longhi Group parent organization De’Longhi Industrial has held a significant ownership stake in La Marzocco.
In the new deal, De’Longhi Group will pay approximately US$374 million for the acquisition of La Marzocco shares and other shares from De’Longhi Industrial.
“On the date of approval of the transaction, De’Longhi SpA is subject to legal control by De’Longhi Industrial, which holds 53.59% of the total share capital of the De’Longhi Group,” De’Longhi stated in an announcement to investors. “Furthermore, De’Longhi Industrial indirectly controls La Marzocco, by holding, through its affiliates, 62.6% of its share capital.”
According to De’Longhi, the new corporate vehicle will have an independent board of directors reporting directly to De’Longhi SpA CEO Fabio de’Longhi.
“Furthermore, the independence, culture and distinctive character of La Marzocco will be guaranteed by the current management, who will remain in office and act as long-term shareholders.”
According to De’Longhi, La Marzocco is expected to generate €240 million (US$262 million) in income in FY 2023, while Eversys is espected to generate €132 million ($144 million).
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