Arçelik, an Istanbul-based company, is set to buy Singer Bangladesh's majority shareholder Retail Holdings Bhold BV's 57 percent stakes for $75 million, as foreign companies continue to direct their gaze on to Bangladesh.
The transaction is anticipated to close in April, said a press release from Retail Holdings on Friday.
“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,” said Hakan Bulgurlu, chief executive officer of Arçelik, in the press release.
The remaining 43 percent of the shares of Singer Bangladesh, a major retailer of home appliance, is publicly owned.
Founded in 1955 as a subsidiary of Koç Holding, Turkey's largest industrial conglomerate and a member of the Fortune 500, Arçelik is a leading player in the home appliance industry with 21 manufacturing facilities in eight countries.
It is the third largest home appliance company in Europe.
Singer Bangladesh is the largest retailer of consumer durables in Bangladesh, with 385 stores and 720 wholesale dealers.
Turnover in 2018 was Tk 1,370 crore (approximately $164 million) and its net profit after tax was Tk 92 crore (approximately $11 million).
Singer closed 1.97 percent higher at Tk 263.80 on the last trading day of last week on the Dhaka Stock Exchange.
“The Singer Bangladesh business will benefit significantly from the new relationship with Arçelik,” said Stephen H Goodman, Retail Holdings NV's chairman, president and CEO.
Arçelik possess a very strong balance sheet and decades of highly successful operating experience across many markets around the world.
Singer Bangladesh will also have access to the extensive Arcelik brand portfolio, he added. Officials of Singer Bangladesh declined to comment on the transaction.