KARACHI: Arçelik AS, a global leader in the home appliances industry, on Friday announced the $258 million acquisition of Dawlance, Pakistan’s market-leading home appliance brand, as part of its global expansion into fast-growth opportunity markets.

The transaction will give Arçelik, which is owned by Koç Group, Turkey’s largest industrial conglomerate, a significant presence in the world’s sixth most populous country at a time of increased economic growth, said a press release.

The acquisition is expected to close by the end of 2016 subject to fulfillment of closing conditions, including regulatory approvals.

Pakistan’s economy is forecast to grow around five per cent annually for the next three years. It has increasingly prosperous working and middle class, with many aged 20-40, and is rapidly urbanising, all of which is very favourable for Arçelik.

Dawlance was founded in Karachi in 1980 and remains a privately-owned company. It has two manufacturing sites in Karachi and one in Hyderabad, supporting 3,000 staff across an extensive distribution, sales and service network. Dawlance operates in refrigerators, air-conditioners, micro-wave ovens, washing machines and freezers.

Dawlance reported 2015 revenues of $221 million and EBITDA of $45 million.

Levent Çakıroğlu, CEO of Koç Holding said Arçelik has made a significant investment in Pakistan in line with its global growth strategy and this investment will further strengthen Turkey-Pakistan economic ties.

Through the incorporation of Dawlance into our group, we will gain a strong and strategic foothold in Pakistan, a promising economy, he added.

Fatih Ebiçlioğlu, President of Consumer Durables Group of Koç Holding, said: “Pakistan is the sixth most populous country in the world with a population of 200 million people. Particularly, its young population, increasingly growing economy, makes it an enticing prospect as a market in the region.

Published in Dawn, July 2nd, 2016