Arçelik, an Istanbul-based home appliances company, has completed the acquisition of the 57 percent stakes of Singer Bangladesh's majority shareholder Retail Holdings Bhold BV for $75 million.
Singer Bangladesh is one of the leading home appliance retailers and manufacturers in the country.
“This acquisition is another significant step on our Silk Road strategy,” said Fatih Ebiçlioğlu, president of Koç Holding Consumer Durables Group and chairman of Singer Bangladesh, in a statement.
Arçelik, founded in 1955, has operations in the durable consumer goods industry with production, marketing and after-sales services.
It offers products and services in 146 countries with 30,000 employees and has 21 different production facilities in eight countries. It has 12 brands: Arçelik, Beko, Grundig, Blomberg, ElektraBregenz, Arctic, Leisure, Flavel, Defy, Dawlance, Voltas Beko and Altus.
Ebiçlioğlu also says Bangladesh is one of the fastest-growing economies in the world, and will further accelerate in the medium to long-term.
“The market offers huge potential with its expanding middle-class and young population.”
According to Ebiçlioğlu, Arçelik will combine its global expertise, scale and knowledge with the strong market position of Singer Bangladesh equipped with its strong brand image, for further product developments to grasp the local market needs.
“Our mid-term target is to become the market leader in the major product groups.”
He says Arçelik has intensively grown in the Asia-Pacific in the last decade with investments in China, Thailand, Pakistan, and India in a bid to establish a trade corridor along the historic Silk Road.
Singer Bangladesh's remaining 43 percent shares are traded at the Dhaka Stock Exchange and its stocks rose 1.80 percent to Tk 186.50 yesterday from the previous day.