Appliance manufacturer and distributor Breville will spend nearly $170 million to acquire Italian upmarket coffee machine maker LELIT in a move designed to significantly strengthen Breville’s footing in the coffee market.
Breville, which is listed on the ASX with a market capitalization of $3.7 billion, told shareholders on Friday morning the deal would see the company acquire 100 per cent of LELIT for €113 million ($168 million), paid half in cash and half in Breville shares.
LELIT was founded in Italy in 1985 and primarily sells a range of mid-to-high end at-home coffee machines, priced between $1000 to $5000. The business also sells a range of high-end grinders, and a range of high-end clothes ironing systems.
In its announcement, Breville did not mention the ironing side of LELIT’s business, focusing only on its coffee systems. The business will undergo a pre-acquisition restructure prior to it joining the Breville group.
“The acquisition of LELIT brings together the two great coffee cultures of the world: Italy and Australia,” Breville Group CEO, Jim Clayton, said.
“Both companies have a shared passion for using product innovation to improve our customers’ coffee experience at home, and we look forward to working alongside LELIT and its existing partners to further accelerate its growth and product innovation, while preserving the values that underpin its Italian identity”.
This is the second major coffee-related acquisition completed by Breville in recent years, with the company acquiring premium coffee grinder maker Baratza for $84 million in October 2020.
“Breville Group is the ideal strategic partner to support LELIT in its next stage of growth, at the same time enabling us to remain faithful to our Italian heritage and design,” LELIT CEO, Emanuele Epis, said.
“We look forward to leveraging Breville’s global platforms, capabilities and infrastructure to further strengthen our success on a global scale”.