Turkish household appliances manufacturer Arçelik acquired Pakistan’s leading brand Dawlance after a major investment of $243.2 million according to an official statement issued by the company.
The formal announcement was made on Monday where the company clarified that the purchase will take place through subsidiary firm Ardutch BV located in the Netherlands. Transfer of shares and sales companies operating under the brand name Dawalnce will take place after 7th November 2016, once all the matters are finalized officially.
According to a statement issued by the company, Arcelik will continue to run two Dawlance manufacturing sites located in Karachi and Hyderabad. It also plans to extend the distribution network all over Pakistan covering a majority of the population. The aim is to maximize reach and effectiveness.
The Company engages in the production and marketing of durable goods, consumer electronics and after-sale services. Its products include white goods, electronic products, small home appliances and kitchen accessories, such as refrigerators, freezers, washing machines, dishwashers, aspirators, vacuum cleaners, coffee makers and blenders.
The company has active presence in over a 100 countries including US and China with over 4500 branches in Turkey. The company is controlled by KOC Holding which is Turkey’s largest and most influential industrial and services group.
With this prodigious investment in Pakistan, the company will now have 18 facilities in seven countries and over a 30,000 employees.
The decision was made in light of Pakistan’s stabalizing economy, rapid urbanization and emergence of educated middle or working class. All these factors were of great interest to Arcelik thus the decision to acquire Dawlance was finalized.
Levent Çakıroğlu, CEO of Koç Holding said Arçelik has viewed this opportunity as a golden chance to expand its audience range.
“Through the incorporation of Dawlance into our group, we will gain a strong and strategic foothold in Pakistan, a promising economy,” he added.
Dawlance, founded in 1980, is a privately owned company which has been recognized nationally for its home appliances. Dawlance operates in refrigerators, air-conditioners, micro-wave ovens, washing machines and freezers. It is reported that 2015 revenues of Dawlance were $221 million and EBITDA of $45 million.
This major merger between two conglomerates will sure have lasting impact on Pakistan’s economy, it is yet to see whether confidence of investors will further increase as time unfolds and make Pakistan economically stable.