MILAN (Reuters) - Italian home appliance maker De’ Longhi said on Monday it had agreed to buy U.S. home appliances maker Capital Brands Holdings Inc from private equity firm Center Lane Partners for around $420 million.
De’ Longhi said the deal would make the United States its largest market and strengthen the company in the food preparation sector, especially in the growing healthy food segment.
California-based domestic appliances group Capital Brands, which is known for its Nutribullet and Magic Bullet blenders, forecasts net revenue of around $290 million in 2020.
The closing of the deal, which values Capital Brands at just above eight times forecast core earnings for 2020, is expected before yearend.
De’ Longhi shares were up 3.25% at 29.24 euros as of 0850 GMT.
De’ Longhi Group was advised by BofA Securities, White & Case and Ernst & Young, while Centre Lane Partners was advised by Goldman Sachs and PJ Solomon.
Reporting by Elisa Anzolin; editing by Jason Neely