ELKO Group Announces Strategic Expansion into Major Domestic Appliances by Acquiring Deltaco BalticRiga, 2025-01-10 06:59 CET --
ELKO Grupa AS (ELKO Group), a region’s leading distributor of IT and CE products, has today entered into a conditional agreement for the purchase of 100 percent of the shares in Deltaco Baltic UAB, a Lithuanian subsidiary of Aurdel Sweden AB, a part of DistIT Group. The sale price is EUR 3 million, and the transaction is subject to a final Sale- and Purchase Agreement (SPA), 2024 audited financials and customary regulatory approvals.
Deltaco Baltic UAB is a distributor of mainly large- and small-scale appliances (MDA and SDA) as well as accessories for PCs, laptops, mobile phones and tablets, headquartered in Kaunas, Lithuania. The products are mostly sold to other retailers in the B2B market and to a number of retail chains in the Baltic countries. Deltaco Baltic's sales in 2023 amounted to EUR 13.7 million, which corresponded to approximately 7 percent of the DistIT Group's total sales.
A distribution agreement will be established between Aurdel Sweden AB and Deltaco Baltic UAB for continued sales of Deltaco’s accessories.
The acquisition of Deltaco Baltic UAB is a strategic step by ELKO Group to enter major domestic appliance distribution.
“We are excited about the growth opportunities this acquisition may bring to both ELKO and Deltaco Baltic,” said Svens Dinsdorfs, CEO of ELKO Group. “For ELKO, this means an expanded product portfolio, while for Deltaco Baltic and its represented brands, it translates to increased market reach. Our customers have clearly expressed a desire for a more comprehensive range of home appliances, particularly major appliances. Integrating these products requires adjustments to our logistics and operational frameworks. By leveraging Deltaco’s established infrastructure, vendor partnerships, and expertise, ELKO will ensure the efficient distribution and delivery of our enhanced product offerings swiftly and effectively.”
About ELKO Group
The ELKO Group is one of the region's largest distributors of IT and consumer electronics products and solutions, representing 350 IT manufacturers. The company provides a wide range of products and services to more than 10 000 retailers, local computer manufacturers, system integrators and enterprises within various sectors in 13 countries in Europe. www.elkogroup.com
About DistIT AB
DistIT owns and develops niche distributors of IT, mobility, consumer electronics, networking and data communications products in the Nordics and the Baltics. Companies within the DistIT Group deliver B2B as well as B2C products to the IT markets mainly in the Nordics. The DistIT stock is listed on the Nasdaq First North Premier Growth Market exchange and DistIT’s Certified Adviser is Carnegie Investment Bank AB (publ).
About Deltaco Baltic
Deltaco Baltic UAB is a leading wholesale distributor of IT accessories, household appliances, and electronics, supplying top brands such as Beko, Gorenje, Hisense and Deltaco to large and medium-sized retail chains and small retailers in the Lithuanian, Latvian, and Estonian markets. Established in 1996, the company has built extensive expertise and reliability, becoming a trusted partner for both manufacturers and clients by offering a comprehensive package of value-added services that ensure smooth, efficient, and successful operations for all parties involved. Since May 2014, Deltaco Baltic UAB has been part of the Nordic-based DIST IT AB group.
Mara Skudra
Chief Marketing Officer
ELKO Group
4, Toma Street, Riga, Latvia, LV-1003
mobile: + 371 26545876
mara.skudra@elkogroup.com
|
