Electrolux Acquires Chilean Appliance Company CTI

As a part of its strategy to grow in emerging markets, Electrolux will acquire Sigdo Koppers’ controlling stake in Compaia Tecno Industrial S.A (CTI). The acquisition makes Electrolux the largest supplier of appliances in Chile and Argentina, and further enhances Electrolux position as a leading appliance company in the fast-growing Latin American market.

 

“Electrolux has very strong roots in Latin America, and we have been partners with CTI in certain Latin American markets for the past 15 years. We are committed to the strong brands of CTI, which are aimed at segments of the market that are complementary to those of Electrolux,” says Ruy Hirschheimer, president of Electrolux Major Appliances Latin America.

 

Sigdo Koppers and certain associated parties have agreed to sell their controlling interest in CTI to Electrolux, corresponding to approximately 64 percent of the outstanding shares. CTI is listed on the Santiago Stock Exchange. Under the terms of the agreement, Electrolux will commence a cash tender offer to acquire 100 percent of the outstanding shares in CTI at a price of 34.87 Chilean Pesos (CLP) per share with Sigdo Koppers and certain associated parties committed to tender their 64 percent stake.

 

In Chile, CTI manufactures refrigerators, stoves, washing machines and heaters, sold under the brands Fensa and Mademsa, and it is the leading manufacturer with a volume market share of 36 percent.Through its wholly-owned subsidiary Frimetal, it also holds a leading position in Argentina with the GAFA brand. Somela is the largest supplier of small domestic appliances in Chile.