Breville Closes Italian Cofffee Co Deal As Shares Plunge 40%
Breville Group Limited whose share value is down 40% has acquired Italian coffee group LELIT for $140M of which $84M is cash.
The group that are facing major trading headwinds has seen the share value of the Company fall from a high of $32.50 in January 2022 to $18.34 today.
Founded in Castegnato, Italy in 1985, LELIT designs, manufactures, and markets premium prosumer home coffee equipment in Europe with Breville looking to grow their share of this market globally by taking advantage of their distribution networks.
Breville claim that ‘As a rapidly growing disruptor in the premium Italian-made espresso machine and grinder market, the acquisition of LELIT strategically complements Breville’ s award-winning coffee portfolio and brings together two iconic companies in the design and distribution of preeminent home coffee equipment”.
Breville said that the purchase is on a cash and debt free basis and is subject to customary post settlement adjustments.
Total consideration comprises A$84m in cash and the issue of 3,100,205 BRG ordinary shares.
The number of Shares to be issued has been calculated based on a Share price of A$27.64 which was set in March 2022.
The total consideration for reporting purposes is A$140 million and is based on the Share component being valued at market prices at transaction completion.
The Shares are subject to a five-year trading lock post completion.
Key members of the LELIT Group management team, including the founders, have joined the Breville Group and the integration of the LELIT Group is underway claim Breville executives.