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Sunday, July 3, 2016

Turkish company Arçelik acquires Dawlance for $258 million

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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