Turkish company Arçelik has said it is going to acquire Dawlance, Pakistani
manufacturer of consumer durables, for $258 million.
The deal is expected to be
closed by the end of 2016, as it requires approvals from Competition Commission
of Pakistan (CCP), purchase of minority stakes and transferring of land and
buildings to the ownership of the company, it said.
Dawlance had revenues of
$220.6 million in 2015. Similarly, its earnings before interest, tax,
depreciation and amortization (EBITDA) is $45 million last year. Its net debt
amounted to $30 million at the end of 2015, according to Deutsche Bank.
Sources close to the sponsors
of Dawlance say the company had been on the auction block for the last five
years.
Bashir Dawood is the major shareholder of Dawlance. He is Hussain Dawood’s brother-in-law, a corporate tycoon
who controls majority shareholdings in Engro, HUBCO, and Dawood Hercules groups.
Sources say the owner of
Dawlance wanted to permanently move abroad. His children have established
careers in fine arts and interior designing in Europe and the Middle East and
apparently have no interest in managing the family business.
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