By Grant Shepherd
SYDNEY: Royal Philips Electronics has just announced that it has finalised its new acquisition deal with Saeco, one of the world’s leading coffee machine brands.
The new deal with Saeco International Group S.p.A of Italy has been created in efforts to strengthen its position in the espresso machine market and make itself a global leader in the coffee machine category.
Philips is keen to enter this market space due to the fact that it typically achieves double digit sales growth and profit margins, and is often considered the most valuable market space in the global coffee appliances market.
"Through this acquisition, we are creating a new, dynamic market leader in coffee machines with excellent growth prospects for the future," said Andrea Ragnetti, chief executive officer of Philips Consumer Lifestyle.
"It makes total sense for Philips to establish a strong foothold in espresso machines. Our reputed and reliable brand in coffee appliances gives us an excellent position to win in this space.”
Ragnetti also commented on the success of the Saeco brand.
“With Saeco, we acquire a company with massive experience and credibility in the espresso machine market and a strong management team which has agreed to stay on following this acquisition, said Ragnetti.
“I believe Saeco’s expertise and technical know-how, coupled with Philips’ strong marketing and sales capabilities will create a winning combination, allowing us to capitalise on the completely renewed range of espresso machine propositions, which Saeco will be launching from September onwards."
Federico DeAngelis, chief executive officer of Saeco was also very enthusiastic about the new acquisition.
"We are very excited that we have been able to concretize this deal and secure the future for Saeco," said DeAngelis.
"We are convinced that, by joining forces, we can substantially strengthen our espresso machines business, and we are particularly looking forward to benefit from Philips’ position and worldwide expertise to this effect. Saeco could not have found a better new home, and I am convinced our company is excellently positioned for a healthy, exciting future."