Eureka Forbes Ltd, part of the Shapoorji Pallonji Group, is to acquire a controlling stake in Switzerland-based Lux International to help double revenue.
With this partnership, the home appliance maker Eureka Forbes plans to extend its footprint to over 40 countries with 25,000 employees. Financial details were not disclosed.
Eureka Forbes is one of the flagship companies in the Shapoorji Pallonji Group, with a turnover of over $300 million. Its flagship brand is water purifier brand Aquaguard.
While Eureka Forbes is a direct sales organisation, Lux International, Switzerland, is termed the oldest direct sales company, founded in 1901, and subsequently, acquired from the Electrolux Group, Sweden, by the von der Becke family in 1999.
In 2007, Eureka Forbes and Lux International had entered in 50:50 joint venture to form Forbes Lux for global operations. Later in 2010, Lux International sold a 25 per cent stake in the company to Eureka Forbes.
On May 15, Forbes and Company informed the stock exchange that Eureka Forbes Ltd, a wholly-owned subsidiary, and its wholly-owned subsidiary Aquamall Water Solutions Ltd, are proposing to enter into agreements to acquire their existing and to be formed overseas subsidiaries, of the balance 75 per cent of Lux International AG, Switzerland.
In a statement, Shapoor Mistry, Chairman, Eureka Forbes said: “We share a close partnership with Lux International and the von der Becke family. Both companies should enjoy significant synergies from this proposed transaction.''
With an ambitious goal to increase gross sales turnover from the current $500 million to over $1 billion by 2017, the duo have teamed up to create a new global leader in the health and hygiene direct sales industry.
New centre
A new Forbes Lux Centre of Excellence is to be founded, creating a strategic think-tank with top management teams of both companies, noted Reto von der Becke, President & CEO, Lux International. He added that the close personal partnership would be reflected in the future leadership structure of the company.
With the proposed acquisition, Eureka Forbes not only gains access to new markets in Europe, Africa and Latin America, but also to premium products and over 15,000 sales partners around the world.