Date / Mar.07.2018
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KUKAHOME will invest EUR41.6 million (USD51 million) through our wholly-owned Hong Kong subsidiary to acquire all equity in German furniture designer and manufacturer Rolf Benz AG to improve our international positioning and raise our brand value.
The Hong Kong unit signed an equity acquisition agreement with Locomore GmbH. The deal's valuation is based on 8.5 times the underlying company's audited earnings before interest, taxes, depreciation, and amortization (EBITDA) of EUR4.89 million in 2016, and net of disposal of its bedding business. The two parties agree that after the deal closes the transaction price will be paid based on the actual audit.
Rolf Benz, headquartered in Nagold, Germany, is the best-known upholstered furniture brand in Germany (GFK Brand Awareness Study 2016). The company's three major brands, Rolf Benz, Huelsta Sofa, and Freistil, furnish consumers with different spending power and style, with over 80 percent of their sales in Europe and all their sofas produced by the parent company's plant in Nagold, in the southwest German state of Baden-Wuerttemberg, the statement added.
Rolf Benz is renowned for high quality, functionality, and design. The acquisition will thus enrich KUKAHOME's brand positioning and product categories, enhance our research and development and design capabilities, and attract world-class talents.