Amica, the Polish white goods manufacturer, has acquired UK kitchen appliance brand CDA in a deal worth £24.3 million.
The acquisition is the largest in Amica’s 70-year history and will significantly strengthen the company’s position in Western Europe.
Amica Wronki S.A. has acquired 100 per cent of the shares in CDA Group Ltd, which is based in Langar, Nottinghamshire.
The sum of £24.3 million (approximately 147 million Polish zloty) is to be paid in three tranches until the year 2017.
The first (87.6 per cent of the transaction’s value) has been paid today (December 1).
CDA was established 24 years ago and employs around 200 people. It is primarily focused on sales of built-in products, but is also said to have a diverse range of freestanding appliances.
The outright purchase of the CDA Group forms part of a strategy that aims to generate revenues of 1.2 billion euros by 2023.
Amica said it would achieve this through organic growth, sales diversification and business process optimisation alongside further strategic acquisitions.
Said Jacek Rutkowski, president of the board of Amica Wronki S.A: “With the purchase of CDA, we are strengthening the position of the Amica Group in Western Europe. This transaction guarantees us four times higher sales in the UK and Ireland and a 10 per cent increase in revenues of the Amica Group, excluding future synergies.”
Amica’s sales in the UK and Ireland have increased over the first three quarters of 2015 by 20 per cent on a year-to-year basis.
In 2014 its turnover in the British market reached £13 million, doubling its revenues from 2013.
CDA posted £43 million in revenues for 2014/15 and, under its new owners, is set for ‘compelling growth’, according to Amica.
Said Piotr Skubel, vice-president for strategy and controlling at Amica Wronki S.A: “The experience and knowledge of CDA’s management team, customers and the complementary character of the product portfolio are key. Amica intends to capitalise on the market position of CDA, particularly in the built-in appliances sector.
“There are exciting opportunities with each of the brands. By keeping each autonomous with its own products, innovations and separate distribution channels, both businesses will benefit immeasurably.”
Added Simon Freear, Amica’s country manager for the UK and Ireland: “Key management are to remain with both Amica and CDA and this is important from the point of view of building CDA’s value in the Amica Group and keeping the distinct identities of the brands.”
Commenting on the deal, CDA’s managing director, Ian Kershaw said: “We have an ambition to put a CDA appliance in every home in the UK, and under the umbrella of Amica we can achieve that.
“In every conceivable way, this deal is exactly what CDA needs to take the next step in our journey. We are very fortunate to have the considerable resources of one of the fastest growing appliance companies in the world behind us. All of our staff and trade partners can only look forward to even greater times ahead.”