The Breville Group Ltd (ASX: BRG) share price could end the week on a high on Friday.
In morning trade the appliance manufacturer’s shares are up slightly to $29.95.
Why is the Breville share price pushing higher?
The catalyst for this gain has been the announcement of an acquisition by Breville this morning.
According to the release, Breville has completed the acquisition of Seattle-based coffee grinding company, Baratza.
Breville has acquired 100% of Baratza on a cash and debt free basis for a total consideration of approximately US$60 million. Approximately US$43 million of this consideration was paid in cash, with US$17 million being paid through the issue of 884,956 shares.
Those shares were priced at the 20-day volume weighted average price of Breville shares up to 1 October. They are subject to a three-year trading lock.
What is Baratza?
Established in 1999, Baratza is a designer and marketer of premium coffee grinders for North American and international markets.
Management believes the acquisition will be complementary to Breville’s existing premium coffee business. It notes that it brings together two of the world’s leading companies in the design and global distribution of coffee products.
Breville CEO, Jim Clayton, commented: “We are excited by the opportunity to bring Baratza into the Breville family. Our combined experience will unlock dynamic revenue synergies for both businesses, that share a passion for innovation and an unwavering commitment to enhancing the consumer experience.”
This sentiment was echoed by Baratza’s CEO and Co-Founder, Kyra Kennedy.
Kennedy said: “As a business renowned for its excellence in leading-edge design and customer service, it is vital to us that we maintain our unique culture and global brand. In Breville Group, we are confident we have found a partner with shared values and deep category expertise, whose vision for the future complements our own.”
No details were provided in respect to Baratza’s earnings or sales, nor whether it will be accretive to Breville’s earnings in FY 2021.