Arçelik continues to expand its footprint in Asia-Pacific
Arçelik has signed an agreement to acquire Retail Holdings Bhold BV that has a majority stake in Singer Bangladesh Limited, one of the leading home appliance retailers and manufacturers in Bangladesh, to expand its foothold further in Asia-Pacific. Under the agreement, Arçelik’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.
Arçelik has operations in the durable consumer goods industry with production, marketing and after-sales services, Arçelik offers products and services in 146 countries
Singer is the largest retailers of consumer durables in Bangladesh, with 385 company owned stores. Singer commenced operations in the region in 1905. The company also has over 700 wholesale dealers. Singer Bangladesh is 57% owned by Retail Holdings Bhold B.V.
Market extension in Asia pacific
Arçelik 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.
Arçelik 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 stated, “The Singer Bangladesh business will benefit significantly from the sale as Arçelik 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.”
