A year after a sizeable external investment, a kitchen appliance business has made its first acquisition.
Private equity firm Anacacia Capital invested an undisclosed sum last July in a new company, Home Appliances, with ownership split between Anacacia, the Varvaressos family and managing director Owen Morgan.
After working on the latest deal for several month, Anacacia has announced that Home Appliances had made a bolt-on acquisition in the form of Sydney-based Integrated Appliance Group.
Like the Euromaid business, that is at the core of Home Appliances, IAG is in the cooking appliances sector. The Varvaressos family owned the Euromaid cooking appliances brand that was merged with Home Appliances business last year. Home Appliances will merge IAG with Euromaid but keep those brand names along with the ARC Appliances brand that IAG owns.
Euromaid is available through major retail stores like Harvey Norman and The Good Guys, while IAG and ARC are sold directly by kitchen stores such as Nobby Kitchens.
"Both Euromaid and IAG had record financial years to June 2010," said Anacacia director Jeremy Samuel, who is also a non-executive director on the Home Appliances board.
Michael Hall founded IAG in 2000 and together with Kestrel Capital developed and implemented a distribution strategy of supplying kitchen appliances through kitchen retail outlets.
Following its acquisition, Home Appliances is expected to have revenue between $30 million and $50 million.
© Australian Financial Review 2010