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De’ Longhi acquires La Marzocco to increase its coffee machine production

De' Longhi acquires La Marzocco to increase its coffee machine production

December 27 - 2023

Coffee Geography Magazine


Coffee equipment suppliers De'Longhi and La Marzocco International LLC have partnered to enable synergies between La Marzocco and Eversys, another coffee equipment company owned by De'Longhi. 

De' Longhi has agreed to buy from its parent company a stake in high-end espresso machine manufacturer La Marzocco as it bets on coffee to pep up growth. Milan-listed De' Longhi will spend $374 million to acquire 41.2% of La Marzocco from De' Longhi Industrial, its parent company, as well as from other minority shareholders, to create a hub with its existing Eversys coffee machine-making operation.

De' Longhi will control around 61.4% of the new hub which will see the two companies remain independent, while reaping benefits in terms of savings and chances to cross sell products. De' Longhi, whose brand ambassador Hollywood actor Brad Pitt this year featured in the launch of two new coffee machines that also make cold brew, said the investment accelerated its strategy that sees coffee as a long-term growth engine.

It aims to provide for coffee drinkers both at home and in the professional catering sector. The strategic rationale is clear to make of De Longhi, a company more focused on the fast-growing coffee category and even more in the faster growing professional one. The new hub is forecast to have an aggregate pro-forma turnover of around 372 million euros and an adjusted core profit of roughly 87 million euros.

"The group, once the operation has been finalised, will still have ample financial resources and significant financial flexibility in view of future growth," Chief Executive Fabio De' Longhi said in a statement. 

The deal, which is subject to rules regulating transactions among related parties, is expected to be finalized by the first quarter.

Chief Executive Fabio De' Longhi

Chief Executive Fabio De' Longhi

The company was founded by the De'Longhi family in 1902 as a small industrial parts manufacturing workshop. The company incorporated in 1950. Historically a major producer of portable heaters and air conditioners, the company has expanded to include nearly every category of small domestic appliances in the food preparation and cooking, as well as household cleaning and ironing, segments. 

The company is especially well known for the Artista Series espresso machines, the De'Longhi gelato maker as well as the Pinguino portable air conditioner. 

Its acquisition of the British appliance maker Kenwood for £45.9 million (about $66.7 million) back in 2001 gave it access to Kenwood's Chinese factory. As a result, many of De'Longhi's products are now imported from China, while design and engineering remain largely in Italy.