Philips closes deal to buy Saeco for €170m

2nd August 2009

Netherlands-based Royal Philips Electronics in late July said it had bought Italian espresso machine manufacturer Saeco International Group for €170m.

The move puts Philips, which already produces the Senseo range of single serve coffee machines, into the front rank of coffee appliance producers.

The Italian group, which makes Gaggia and Saeco machines and produces espresso machines for roaster Lavazza and other concerns, is thought to be the largest espresso machine maker in Europe, with about 30% of the market, reports said. The company, based in Gaggio Montano near Bologna, had a turnover of €318m in its financial year to the end of March.

Philips purchased Saeco from its owners, investment firm PAI Partners. The espresso machine company will become part of Philips’ Domestic Appliances business unit, in its Consumer Lifestyle sector, according to the Dutch electronics giant.

The Saeco acquisition, which was approved by European Union regulators in mid-July, became possible following an agreement with the Italian company’s banks about dealing with Saeco’s outstanding debt, the reports added.

Pictured are Saeco CEO Federico De Angelis (l) and Andrea Ragnetti, CEO of Philips Consumer Lifestyle