Pakistani manufacturing company of consumer durables, Dawlance, has signed an acquisition deal worth $258 million with Turkey’s Arçelik AS Group.
The Turkish company has cited favourable economic conditions for the deal.
The deal is likely to be closed by the end of 2016, as it requires approvals from competition authorities, purchase of minority stakes and transferring of land and buildings to the ownership of the company, it said.
Dawlance manufactures white goods – which are consumer durables like refrigerators, freezers, air conditioners, microwave ovens and washing machines – in three factories and sells them in local and foreign markets.
According to Deutsche Bank, Dawlance has provided their financial account details to Arcelik, it had revenues of $220.6 million in 2015. Its net debt amounted to $30 million at the end of 2015.
Authorities at Dawlance said that the company had been on the auction block for the last five years.
There are four major players in Pakistan’s white goods market, namely Dawlance, PEL, Haier and Orient. Waves and Kenwood are relatively smaller players, albeit with significant shares in some segments of the durables market.
Dawlance has 37 branches in addition to 750-plus franchises across the country.