Turkish appliance giant Arcelik has signed an agreement to acquire a majority stake in Singer Bangladesh for $75 million, an official announcement said on Sunday.
Under the agreement, Ardutch BV, a wholly owned subsidiary of Arcelik, would acquire a 57 percent stake in Singer Bangladesh's majority shareholder Retail Holdings Bhold BV.
The transaction is set to be done in April, said a press release, adding that the remainder of the shares are publicly owned.
“Singer Bangladesh is a strategic fit for us, and this deal is a unique opportunity to invest in Bangladesh, a market which holds great untapped potential,” said Hakan Bulgurlu, Arcelik's CEO.
“The Singer Bangladesh business will benefit significantly from the new relationship with Arcelik,” said Stephen H. Goodman, Retail Holdings NV's chairman, president, and CEO.
Arcelik has a very strong balance sheet and decades of highly successful operating experience across many markets around the world.
Singer Bangladesh will also have access to the extensive Arcelik brand portfolio, he added.
Founded in 1955 as a subsidiary of Koc Holding, Arcelik, Turkey’s largest industrial conglomerate and a member of the Fortune 500, is a leading player in the home appliance industry with 21 manufacturing facilities in eight countries.
It is the third-largest home appliance company in Europe.
Singer Bangladesh is the largest retailer of consumer durables, with 385 stores and 720 wholesale dealers, in Bangladesh, the press release added.
Its turnover last year was approximately $164 million and net profit after tax was approximately $11 million, it said.