China Furniture Maker Kuka Home Pays USD51 Million for Germany's Rolf Benz
Tang Shihua
DATE:  Mar 01 2018
/ SOURCE:  Yicai
China Furniture Maker Kuka Home Pays USD51 Million for Germany's Rolf Benz China Furniture Maker Kuka Home Pays USD51 Million for Germany's Rolf Benz

(Yicai Global) March 1 -- Chinese household furniture maker Kuka Home Co. will invest EUR41.6 million (USD51 million) through its wholly-owned Hong Kong subsidiary to acquire all equity in German furniture designer and manufacturer Rolf Benz AG to improve its international positioning and raise its brand value.

The Hong Kong unit signed an equity acquisition agreement yesterday with Locomore GmbH, the underlying shareholder, the Hangzhou-based furniture service provider announced today. The deal's valuation is based on 8.5 times the underlying company's audited earnings before interest, taxes, depreciation and amortization (EBITDA) of EUR4.89 million in 2016, and net of disposal of its bedding business. The two parties agree that after the deal closes the transaction price will be paid based on the actual audit, said the statement.

Rolf Benz, headquartered in Nagold, Germany, is the best-known upholstered furniture brand in Germany (GFK Brand Awareness Study 2016). The company's three major brands, Rolf Benz, Huelsta Sofa, and Freistil, furnish consumers with different spending power and style, with over 80 percent of their sales in Europe and all their sofas produced by the parent company's plant in Nagold, in the southwest German state of Baden-Wuerttemberg, the statement added.

Rolf Benz is renowned for high quality, functionality and design. The acquisition will thus enrich Kuka Home 's brand positioning and product categories, enhance its research and development and design capabilities, and attract world-class talents, which will also burnish the Kuka Home marque, per the statement.

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Keywords:   Assets Acquisition,Germany,Rolf Benz,Furniture Developer,Kuka Home