Amica has bought the established CDA brand based in Nottinghamshire for a reported £24.3 million as part of a strategy to expand in the UK.
The full press release is as follows:
Amica the leading Polish white goods manufacturer has acquired CDA. As the largest acquisition in Amica’s 70-year history the purchase valued at £24.3 million significantly strengthens the company’s position in Western Europe.
Amica Wronki S.A. has acquired 100 per cent of the shares in CDA Group Ltd, Nottinghamshire. £24.3 million (approximately PLN 147 million) 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. This is the second tactical acquisition for Amica this year. During August 2015 Amica purchased shares in the French distributor Sideme.
The outright purchase of the CDA Group forms part of a strategy which aims to generate revenues of EUR 1.2 billion by 2023. Amica will achieve this through organic growth, sales diversification and business process optimisation alongside further strategic acquisitions.
“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.” Said Jacek Rutkowski, President of the Board of Amica Wronki S.A.
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 the turnover on the British market reached £13 million, doubling its revenues from 2013. Now, with CDA a profitable trading company posting £43 million in revenues for 2014/15, as part of the Amica Group, the Company is set for compelling growth.
“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.” explained Piotr Skubel, Vice-president for Strategy and Controlling at Amica Wronki S.A.
“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.” Says Simon Freear, 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.”
