KKR to buy German cutlery, coffee machines maker WMF for $727 mn
09 Jul 2012
German cutlery and coffee machines maker WMF Wuerttembergische Metallwarenfabrik AG (WMF), over the weekend said that it has received a $727 million (€587 million) buyout offer from US private equity firm Kohlberg Kravis Roberts & Co (KKR).
New York-based KKR is buying a 52-per cent voting stake in WMF from its largest shareholder Crystal Capital, an investment vehicle of Swiss financial investor Capvis Equity Partners AG.
KKR has offered €47 for each ordinary share and at least €31.70 for a preferred share, and is offering the same amount for the remaining stock from owners of ordinary shares.
KKR said that WMF has substantial growth potential and it will use its international presence to firm's WMF's global growth, particularly in Asia and the US.
Zurich-based Capvis had acquired a majority stake in WMF in 2006 for around €90 million and will make at least €238 million from the sale.
Fiba, an investment company which is the second-largest shareholder in WMF with a 37-per cent stake, said that it will not sell its stake at the price offered by KKR.
Geislingen, Germany-based WMF makes kitchen cutlery, tableware and coffee machines for households, hotels, cruise ships and the catering sector.
The company operates five business units - WMF retail, consumer goods, consumer electric, professional hotel equipment, and coffee machines.
The WMF retail unit, which has brands like alfi, Auerhahn, Kaiser, petra, Silit and WMF, operates mainly in Germany, Austria and Switzerland.
Its consumer goods unit focuses on products like cookware, cutlery and kitchen tools for private households, while it's consumer electric unit trades in all electrical products for private households marketed under the nova, petra, Princessd and WMF brands.
Its professional hotel equipment unit has brands like Hepp and WMF, and focuses on cutlery, table and serving ware for the upmarket hotel and catering industries, while its coffee machines unit develops systems for making coffee and coffee specialities.