De’Longhi To License Braun Brand from P&G

De’Longhi S.p.A. and Procter & Gamble have reached an agreement for the perpetual licensing of the Braun brand, owned by P&G, for use within the small kitchen appliance, ironing and selected household appliance categories.

In addition to a perpetual right to use the Braun brand and connected patents inthe above categories, the transaction includes the acquisition of certainproduction assets and the inventory related to the above categories. It isanticipated that certain P&G employees, predominantly located in Germany, willbecome De’Longhi employees upon the closing of the deal. Ownership of theBraun brand will remain with P&G.

”This is an excellent transaction for Braun and Procter & Gamble,” said DimitriPanayotopoulos, vice chairman of The Procter & Gamble Company. ”De’ Longhihas a strong track record in developing premium household small appliances andis the perfect partner to accelerate growth of the Braun equity in these keycategories. This will allow us to focus our in‐house capabilities against driving andexpanding our presence in the rapidly developing Beauty & Grooming appliancespace.”

The Braun business associated with the transaction has revenues of approximately $260 million, mainly concentrated in European markets. Closing of the transaction is subject to approval from antitrust authorities.

According to De’Longhi, the purchase price (excluding inventory) is split into three components. Approximately $65 million to be paid at completion, $117.9 million, deferred in equal annual payments over a fifteen year period, and a variable amount (ranging from 0 to $97 million linked to sales performance of the acquired business over a five year period from completion.

“We are particularly proud to have reached an agreement with P&G in relation tothe licensing of the household small appliances business of Braun,” said Fabio De’Longhi, CEO of De’ Longhi. “This prestigious brand will allow us to enhance ourequity story in the high‐end segment of the small domestic appliances market,characterized by a high degree of quality, innovation and design”.