De'Longhi, P&G Finalize License Agreement for Braun Electrics Line
September 6, 2012,
TREVISO, Italy-The De'Longhi Group and Procter & Gamble have completed their agreement for the perpetual licensing of the Braun brand for small electrics.
The agreement, initially announced in April, calls for De'Longhi to produce a collection of small electrics, ironing and other products under the Braun label. Braun's line of personal-care products remains within P&G's brand portfolio. As previously stated, the agreement includes the acquisition by De'Longhi of connected patents, a few production lines and molds, about 100 employees who will relocate to Germany and the inventory connected with the relevant product categories.
De'Longhi is financing the deal partially through a funding program that includes two bank loans for a total of $100 million, and a U.S. private placement (the sale of securities to select investors) of about $88 million. The remaining part of the deal will be financed internally by De'Longhi.