Country for PR: United Kingdom
Contributor: PR Newswire Europe
Saturday, March 23 2019 - 02:44
Arcelik to Acquire Singer Bangladesh Operations for $75 Million
ISTANBUL, Mar. 23, 2019 /PRNewswire-AsiaNet/ --

Arcelik continues to expand its footprint in Asia-Pacific, announcing the 
acquisition of Retail Holdings Bhold BV which is the majority shareholder of 
Singer Bangladesh, one of the leading home appliances retailers and 
manufacturers in Bangladesh for $75 million

The deal is key to Arcelik's strategy of creating a continuous and strong 
presence along the historical Silk Road

Arcelik (IST: ARCLK), a leading player in the home appliances industry, has 
signed an agreement to acquire Retail Holdings Bhold BV which has a majority 
stake in Singer Bangladesh Limited (SINGERBD), one of the leading home 
appliance retailers and manufacturers in Bangladesh, to expand its foothold 
further in Asia-Pacific. Under the agreement, Arcelik's wholly owned subsidiary 
Ardutch B.V., will acquire Retail Holdings B.V., the company that controls 57 
percent of Singer Bangladesh shares in a deal worth of $75 million. 

Founded in 1905 and headquartered in Dhaka, Singer Bangladesh has an extensive 
product portfolio, ranging from refrigerators to washing machines, televisions 
to air conditioners. It has top two positions in major product groups as well 
as the largest retail distribution network in Bangladesh appliance market. 
Singer Bangladesh has 1,507 employees and it reported 2018 revenues of $164 
million. Singer Bangladesh's reported EBITDA and net income are $20 million 
(12.4%) and $11 million (6.7%) respectively.

Arcelik has been intensively growing in Asia-Pacific in the last decade with 
greenfield investments in China, Thailand, Pakistan, and India in a bid to 
establish a trade corridor along the historical Silk Road.

Koç Holding Consumer Durables Group President Fatih Kemal Ebiçlioolu said: 
"This acquisition is another significant step on our Silk Road strategy. 
Bangladesh is one of the fastest-growing economies in the world, and it will 
further accelerate in the medium to long term. The market offers huge potential 
with its expanding middle class and young population. We will combine our 
global expertise, scale and knowledge with the strong market position of Singer 
Bangladesh equipped with its strong brand image, for further product 
developments to grasp the local market needs."

Arcelik CEO Hakan Bulgurlu said; "Over the next decade, the growth in our 
industry will come from Asia-Pacific. Singer Bangladesh is a strategic fit for 
us, and this deal is a unique opportunity to invest in Bangladesh, a market 
which holds a great untapped potential. Singer Bangladesh has a strong brand 
heritage, extensive retail network, and a talented management team. We will 
continue to build on these strengths by pushing new boundaries and creating 
strong synergies across retail management, production, purchasing and product 
sourcing. Our mid-term target is to become the market leader in the major 
product groups."

Stephen H. Goodman, Retail Holdings Chairman, President and CEO, noted "The 
Singer Bangladesh business will benefit significantly from the sale as Arcelik 
is a much larger and financially much stronger company, with a commitment to 
and a world-wide reputation in the home appliance sector. Following the sale, 
Singer Bangladesh will continue to have a royalty-bearing license from SVP 
Worldwide, the owner of the Singer trademark, to use "Singer" in the company 
name and the "Singer" brand on its stores, products and services."

Founded in 1955 Arcelik has operations in the durable consumer goods industry 
with production, marketing and after-sales services, Arcelik offers products 
and services in 146 countries with its 30,000 employees, 21 different 
production facilities in 8 countries (Turkey, Romania, Russia, China, South 
Africa, Thailand, Pakistan and India),  34 sales and marketing companies all 
over the world and  12 brands (Arçelik, Beko, Grundig, Blomberg, 
ElektraBregenz, Arctic, Leisure, Flavel, Defy, Dawlance, Voltas Beko and 
Altus). Arcelik is listed on Istanbul Stock Exchange. 

Retail Holdings Bhold B.V. is a Dutch private company with limited liability, 
incorporated in Amsterdam on January 29, 1990. The Company has been a member of 
the Retail Holdings/Singer Group and has been acting as a holding company.

Singer is the largest retailers of consumer durables in Bangladesh, with 385 
company owned stores. Singer commenced operations in the region in 1905. Today 
Singer sells all categories of household consumer durables under the Singer and 
third-party brands. The company also has over 700 wholesale dealers. Singer 
Bangladesh is 57% owned by Retail Holdings Bhold B.V. (The Netherlands) and the 
remainder of shares of the company are publicly traded in DSE and CSE.


SOURCE: Arcelik