The world of coffee machines is buzzing with news about a major strategic shift by De’Longhi. This Italian manufacturer, renowned for its superior-quality domestic and professional coffee machines, is taking bold steps to strengthen its position in the global market.
De’Longhi has positioned itself to become a powerhouse in the industry by forming a new business group that includes La Marzocco and Eversys. This exciting development is set to reshape the landscape of the coffee machine market. Here’s the inside scoop!
A De’Longhi Coffee Machine Powerhouse
Australia’s coffee aficionados were excited to hear De’Longhi’s announcement about integrating the globally acclaimed La Marzocco and Eversys brands into its corporate structure. La Marzocco, known for its traditional espresso machines, and Eversys, a leader in super-automatic coffee machines, will join De’Longhi to form a robust group that covers the entire spectrum of coffee machine technologies.
According to the latest figures, the deal involves De’Longhi acquiring a 41.2% stake in La Marzocco for a sum of $374 million, which will contribute to a combined enterprise value of $1.4 billion for the new entity. The group’s forecasted turnover for 2023 is €372 million ($409 million), with an adjusted EBITDA of €87 million ($96 million). This merger not only represents a significant investment but also offers De’Longhi opportunities to enhance research, production and market expansion capabilities.
De’Longhi’s Market Position
The merger will help De’Longhi solidify its standing in both the premium consumer and professional coffee machine segments. With the addition of La Marzocco and Eversys, De’Longhi is set to dominate the super-automatic and traditional espresso machine markets. The company’s Board of Directors believes that this move will unlock cross-selling potential and provide an edge in technological innovation.
Coffee remains a crucial driver of revenue for De’Longhi. In the third quarter of 2023, coffee products accounted for nearly 60% of the company’s total revenues, bolstered by strong sales growth in Eversys machines. By aligning with La Marzocco and Eversys, De’Longhi is positioned to capitalise on the high demand for premium coffee machines globally.
Strategic Goals and Future Projections
Fabio de’ Longhi, CEO and Vice President of De’Longhi, expressed his satisfaction with the transaction, highlighting that it will create a global leader in the professional coffee machine industry. The partnership aims to merge expertise, preserve the unique corporate cultures of each brand, and stimulate further innovation. The acquisition is expected to be completed by the first quarter of 2024, with both La Marzocco and Eversys maintaining their independence and leadership structures.
With a well-established presence in Australia and a focus on premium products, this strategic alignment is set to benefit consumers in Australia. De’Longhi coffee machine brand’s commitment to quality and innovation makes it the ideal choice for coffee enthusiasts and professionals looking for exceptional coffee experiences.
What’s Next for De’Longhi Coffee Machines in Australia?
As the preferred supplier and top-tier repairer of De’Longhi coffee machines in Australia, Bravo Repair Centre is excited about this new chapter in De’Longhi’s journey. We anticipate that the Australian market will benefit greatly from the enhanced product offerings and the expanded technological capabilities that the partnership will bring.
Chat with the Bravo Repair team today about the latest De’Longhi coffee machines and parts in Australia.