Furniture brand B&B Italia has signed an agreement to become the majority shareholder in Italian high-end kitchen manufacturer Arclinea.
The deal was facilitated through funding from private equity company Investindustrial. The current sole shareholder of Arclinea, the Fortuna family, will continue to own a minority stake. It will also continue its role in the operational management, with Silvio Fortuna taking on the role of president.
The agreement will offer B&B Italia the opportunity to expand its product range into the high-end designer kitchen segment.
The partnership between B&B Italia and Arclinea creates a combined turnover of €200 million (£172.2m), with over 85% of its products being exported and a presence in over 80 countries.
It will also offer Arclinea the opportunity to ‘substantially’ accelerate its growth plans with the development of strategic partnerships.
The transaction is expected to be completed by the end of September 2016.
Giorgio Busnelli, chief executive of B&B Italia, said: “For B&B Italia, this is the first major milestone in the growth and development process that formed the basis of the agreement which we signed with Investindustrial last year. B&B Italia now expands its product portfolio into the exciting segment of designer kitchens, a sector of primary importance for both residential and commercial business. Brand strength, a dedication to research and innovation, and a global footprint are some of the values shared by the two companies. The shared mind-set will make it possible to activate synergies in terms of business development and strategic thinking, which will be a very exciting task for both of us to accomplish.”
Andrea Bonomi, managing principal of Investindustrial, added: “The transaction is perfectly in line with the strategy we devised together with Giorgio Busnelli for the further development of B&B Italia. We are thrilled to have contributed to making this agreement happen.
“Arclinea has a strong reputation for exceptionally innovative and qualitative kitchen designs, and we see a perfect complementarity with B&B Italia’s current product offering. The combination is a great opportunity to strengthen the competitive positioning of the group in global designer furnishings.”
Silvio Fortuna, president of Arclinea, concluded: “The core values of our company and our family, are the same as those of Investindustrial and B&B Italia. From this realisation sprang the decision to enter into a partnership and share development projects on the world market. For Arclinea, a global star of the high-end kitchen segment, this will mean a further substantial acceleration of its international development.”