Turkish household appliances manufacturer, Arçelik A.Ş., has recently bought Pakistan's premiere household appliances company Dawlance for $258 million. With the purchase of the Pakistani firm, which owns three manufacturing facilities around the country, Arçelik will have 18 facilities in seven countries. Arçelik A.Ş has signed an agreement to buy Pakistan's premiere household appliances company Dawlance for over a $258 million stake value. Along with Dawlance's manufacturing and sales companies in Pakistan, the company's three manufacturing facilities in two separate locations will be added to Arçelik's global manufacturing network, according to a written statement made by the company.
Totaling a $221 million net sale in 2015 and reaching $45 million in EBITDA (Earnings Before Interest Taxes Depreciation and Amortization), Dawlance has a total of three manufacturing facilities, two in Karachi and one in Hyderabad. One of the leading players in the refrigerator, microwave, freezer, washing machine and air-conditioner markets, the company has nearly 2000 stores countrywide through 16 regional agencies.
It was announced that the purchase will take place through Arçelik A.Ş.'s subsidiary firm Ardutch BV. Share transfer procedures are expected to be completed by late 2016 after gaining the approval of the regulatory bodies and fulfilling the closure requirements. According to Koç Holding CEO Levent Çakıroğlu, this is a really important investment that strengthens the economic ties between Turkey and Pakistan and forms part of the company's global growth strategy. Stating that they would have a powerful and strategic position in the Pakistani economy with Dawlance, Çakıroğlu noted that Arçelik would continue supporting new purchase opportunities. Fatih Elbiçlioğlu, President of Durable Goods Companies at Koç Holding A.Ş., noted that Pakistan was the world's sixth largest country populated by 200 million. "Pakistan is becoming the rising star of the region along with its young population and its recently stabilized and growing economy. With this investment, Arçelik's manufacturing power will reach 18 facilities in seven countries along with 30,000 employees," Elbiçlioğlu continued. Regarding the said purchase, Arçelik CEO Hakan Bulgurlu pointed out that they were operating in over 130 countries around the world and managing premiere companies and brands in a vast geography, from Europe to the Middle East, Africa to Asia.
