British consumer electronics group Alba Plc announced that a joint venture in which it has a 50-percent stake has agreed to buy the Home Intermedia Systems division of Grundig AG (Nuremberg, Germany).
Alba said in a statement that its joint venture with Turkish appliance exporter Beko would pay a maximum of 80 million euros (approx. U.S. $100 million) to buy Grundig's consumer electronics division. Honoring its share, Alba would cover half of the transaction costs.
The acquisition, which is subject to anit-trust and merger clearance, would give the joint venture brand rights, trade marks, patents, tooling, and other assets, in addition to Grundig's national sales organizations in a number of countries, primarily in Europe.
The acquisition is expected to increase Alba's European presence, as Grundig used to be one of Europe's leading consumer electronics firms until it ran into financial troubles in 2003. The Home Intermedia Systems division makes LCD and color TVs, audio systems, VCRs, DVD players, and cordless telephones.
The transaction is expected to take place in April. Upon completion, Alba said it would close Grundig's European TV manufacturing unit and extract cost savings from the deal.
"This is an exciting development for Alba," John Harris, Alba's chairman, said in a statement. "Grundig is one of the strongest names in European consumer electronics, which significantly enhances our branded presence in mainland Europe."
to Daily News