In a recent press release Indesit have announced that they are to take control of the General Electric (GE) brand across Europe and make the move into markets beyond the EU using the Hotpoint brand name, making Indesit a more global player.
It has long been mooted that GE wanted to pull out of the appliance business and this may well be the way for them to do that as, when the appliance side of GE was reputedly up for sale a few years ago there were no buyers to be found. Interest in the brand yes, but no actual buyers willing to stump up the cash required to gain control of the GE brand. Whether this is part of a longer term strategy to both Indesit and GE is, at this time, unknown.
However, it is interesting that we may see Indesit made Hotpoint products appearing in the USA and/or other territories.
Original press release is as follows:
Indesit Company has owned the Hotpoint brand in Europe since its acquisition of UK-based GDA in 2002.
Expanded ownership of the Hotpoint brand strengthens Indesit Company’s brand portfolio and will enable it to upgrade planning of its business outside Europe, as it can count on two brands (Indesit and Hotpoint) already consolidated worldwide.
The cost of the operation is 4 million US dollars, to be paid over a number of years. In the deal, Indesit Company was assisted by the New York-based law firm Reinhardt LLP.
Currently the no. 3 brand in Europe by market share, Hotpoint accounts for 50% of current Group sales.
Indesit Company is one of Europe’s leading manufacturers and distributors of large home appliances (washing machines, washer-dryers, dishwashers, fridges, freezers, cookers, hoods, ovens and hobs). It is the undisputed leader in major markets such as Italy, the UK and Russia. Founded in 1975 and listed on the Milan stock exchange since 1987, the Group posted sales of €2.8 billion in 2011. Indesit Company has eight production centres (in Italy, Poland, the UK, Russia and Turkey) and 16,000 employees. The Group’s main brands are Indesit, Hotpoint and Scholtès.