Following the completion of the authorization process by the competent bodies (in particular the Antitrust Bodies) and the satisfaction of the conditions precedent, the De'Longhi Group finalized the contract stipulated with some affiliated companies of the Center Lane Partners investment fund to take over Capital Brands Holdings Inc., thus fully implementing the preliminary agreements signed on November 23, referred to in a press release issued on the same date.
Capital Brands, founded in 2003 and headquartered in Los Angeles, California, develops and sells home appliances with particular attention to nutrition for the well-being of families in over 100 markets worldwide under the Nutribullet and Magic Bullet brands. The American company has successfully created the personal blender segment, within the broader blender category, becoming the category leader in North America and other key global markets such as Australia, New Zealand and the United Kingdom.
Capital Brands expects net revenues of approximately $290 million for 2020, ahead of last year's sales. With this transaction, the United States becomes the largest market for the De'Longhi Group, with aggregate revenue exceeding $500 million. The price payable for the total value of Capital Brands, on a "no cash and no debt" basis, is $421 million, which is a multiple of 2020 Projected Adjusted EBITDA of just over 8 times.
The consideration for the transaction will be paid out of the existing cash reserves of the De'Longhi Group. In particular, the financial debt to third party credit institutions, the value of which is included in the Enterprise Value, will be fully reimbursed by De'Longhi. The transaction is expected to be accretive to De'Longhi from next year.
