Appliance maker Indesit Company (Fabriano, Italy) will expand its ownership of the Hotpoint brand outside of Europe, under a new agreement with General Electric Appliances.
GE Appliances will retain ownership of the brand in North and South America. Indesit Company has owned the Hotpoint brand in Europe since it acquired UK-based GDA in 2002.
Indesit said expanded ownership of the Hotpoint brand strengthens its brand portfolio and enables it to upgrade planning of its business outside Europe. Indesit can now leverage two brands - Indesit and Hotpoint - that are already consolidated worldwide.
The cost of the agreement is US$4 million, to be paid over a number of years.
Hotpoint is currently the No. 3 major appliance brand in Europe by market share and it accounts for 50% of current Indesit sales.
Indesit is a European manufacturer and distributor of large home appliances, including washing machines, washer-dryers, dishwashers, refrigerators, freezers, cookers (ranges), kitchen ventilation hoods, ovens, and hobs (cooktops). The company had 2011 sales of 2.8 billion euros and has eight production facilities, in Italy, Poland, the United Kingdom, Russia, and Turkey, and it has 16,000 employees. It's dominant brands are Indesit, Hotpoint, and Scholtes.
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