STOCKHOLM (Reuters) - Swedish home appliance maker Electrolux (ELUXb.ST) said on Thursday it was buying U.S. firm Grindmaster-Cecilware, a maker of coffee machines and beverage dispensers, for $108 million in cash.
Grindmaster-Cecilware, which has around 200 staff and is based in Louisville, Kentucky, had sales of more than $65 million last year.
The company, majority owned by BNY Mezzanine Partners L.P., sells products under brands such as Grindmaster, Cecilware, Crathco, and American Metal Ware.
Electrolux said the purchase would broaden the offering in its food service business.
“This move will also reinforce our presence in North America, one of the largest global markets for professional appliances,” said Alberto Zanata, head of Electrolux business area Professional Products.
Electrolux is not disclosing the profitability of Grindmaster-Cecilware, a spokesman told Reuters.
The Professional Products unit is Electrolux’ most profitable business area and increasingly important as the group has made reaching a long-elusive profitability goal its top priority. The unit had an operating margin of 13.9 percent in 2016 compared with 5.2 percent for the whole group.
Reporting by Johannes Hellstrom; editing by Niklas Pollard