Samsung, the world’s biggest smartphone manufacturer recently announced that they would buy Dacor Inc., a US-based manufacturer of kitchen appliances. While the financial details of the purchase are not announced, it is a sign that the South Korean technology giant is attempting to spark growth through deal-making.
Samsung said in a statement that they intend to make Dacor a wholly-owned unit of their US subsidiary Samsung Electronics America Inc. In the past years, the former has accelerated the pace of its purchases as competitive challenges are coming from their three business units: consumer appliances, mobile phones, and semiconductors and display components.
Founded in the mid-1960s, Dacor has made a name for themselves for their luxury appliances and it is one of the few remaining independent appliance manufacturers, making it an ideal target for major international appliance manufacturers. And Samsung is a good fit for them since their strength in dishwashers as well refrigerators complement Dacors strong line up of cooking appliances. This is according to Lloyd Greif, an investment banker who managed the sale for Dacor. It should be noted that Dacor currently sell their products in the US, Canada, and Mexico and could be a company that Samsung want to try to sell their international consumers, he added.
Samsung mentioned it its statement that they do not intend to make changes with regard to Dacor’s operations, manufacturing, and branding. Confirming the approach the they have taken with other recent purchases. For one, Samsung’s consumer electronics division which sells home appliances like washing machines and refrigerators, among others, is lower profile than those that are responsible for smartphone as well as semiconductor sales. Also, just last year, consumer electronics contributed to about one-fourth of Samsung’s overall sales of USD 183 billion (AUD 247 billion) but just 4.7% of its operating profit.