Arçelik A.Ş., parent company of Beko Plc, has announced the $258 million acquisition of Pakistani home appliance brand Dawlance, as part of its global expansion.
The transaction will give Arçelik, which is owned by the Koç Group, a significant presence in the world’s sixth most populous country at a time of increased economic growth, the company says.
Pakistan’s economy is forecast to grow around 5% annually for the next three years. It has an increasingly prosperous working and middle class population, with many aged 20-40 years, and is rapidly urbanising, all of which is very favourable for Arçelik, the company adds.
Dawlance was founded in Karachi in 1980. It has two manufacturing sites in Karachi and one in Hyderabad, supporting 3,000 staff across its distribution, sales and service network.
Dawlance is the number one brand in refrigeration and microwaves in Pakistan, second in air conditioning and third in the laundry categories. It reported 2015 revenues of $221 million and EBITDA of $45 million, Arçelik says.
Arçelik chief executive Hakan Bulgurlu said: “Arçelik is progressing steadily on a global path and aspires to be a truly global player in its industry. Through the last decade we have consistently expanded our global outreach. We have doubled our sales turnover over the last five years and we retain our fast growth in all the markets we operate.
“We pride ourselves on developing products which make a real difference to our customers’ lives and have more than 1,000 engineers in our R&D centres in Turkey, Taiwan and Cambridge, in the UK. We also expect to open more centres soon in Germany and the USA.”
He continued: “Our track record in research and development allied to our geographical manufacturing advantages and economies of scale mean we are well-placed to service both European and Asian markets. Arçelik’s recent investments in Thailand and Pakistan are providing a strong platform for growth in South East Asia as European markets reach saturation point for white goods and long-term economic malaise continues.
“By combining our global expertise and innovation with Dawlance’s excellent local management team, we will strengthen Dawlance’s product offering and brand position. We expect clear advantages to emerge in the development and manufacturing of products for Pakistan and potentially further afield.”