Turkish household appliances firm to purchase South African company

ISTANBUL (A.A) - July 21, 2011 - A Turkish household appliances company will purchase South Africa's largest manufacturer and distributor of major domestic appliances, a company statement said on Thursday.
Turkey's Arcelik signed a contract with Franke Holding AG on Wednesday to purchase South African Defy Appliances Ltd. as Franke owned the South African household appliances company's shares. 
Arcelik's company based in the Netherlands, Ardutch B.V., will provide the necessary finance for the purchase.
Arcelik is expected to take over the shares by the end of September 2011. 
The Turkish company will pay some 325 million USD for the purchase.
Founded in 1955, Arcelik Corp. offers goods and services in more than 100 countries, with 11 production facilities in Turkey, Russia, Romania and China, sales and marketing affiliates operating internationally, and ten brands. With nearly 3,600 dealer and 600 after sales service points, Arcelik hosts the largest services network in Turkey, retaining its leadership position in the white goods, LCD TV and air conditioner markets in 2009.     
Arcelik enhanced its market share significantly by entering new distribution channels in the company's core export markets in Western Europe and particularly in the U.K. and Romania. Arcelik strengthened its position as the second in the market by increasing the company's share from 9 percent to 15 percent in the six main categories of white goods (MDA) in the U.K. and has retained its position by far as the leader in Romania by increasing the company's market share to 35 percent. On a brand basis, Beko remained in the top ten best selling white goods brands in the world in eight main product categories in 2009, doubling the company's success over 2008.    
Defy Appliances Ltd is Southern Africa's largest manufacturer and distributor of major domestic appliances. The company markets its products under the Defy and Ocean brand names.
Defy has an annual turnover (2010) in excess of R2.5 billion (345 million USD), and holds the leading position in the South African Major Appliance market. The company also exports to a variety of markets, including Africa and the Indian Ocean Islands. Defy is owned by Franke Holding AG. Defy currently employs more than 2,600 people.
(BRC-MS)