China's Lenovo Group published a report, confirming that it has fully acquired CCE, a Brazilian consumer electronics maker, for about USD148 million.
Lenovo Group said that with this acquisition, the company expects to increase its market share in Latin America.
According to the agreement signed by the two parties, the acquisition payment will be realized in a combination of cash and stock. Prior to this deal, CCE's shares were hold by two companies, Digibras and Primasv. In 2011, CCE's income was about USD783 million. After the acquisition, Lenovo will retain CCE's management team, including its founder and CEO, Roberto Sverner. CCE's management will work closely with Lenovo's new country leadership to drive both businesses.
Lenovo Group said that the acquisition will enhance the company's product portfolio and improve its operating efficiency in Brazil. Meanwhile, it will accelerate the operation localization of Lenovo and help build a strong consumer and business platform in Brazil.
Yang Yuanqing, chairman and chief executive officer of Lenovo Group, said that this move more than doubles Lenovo's PC market share in Brazil, one of the world's fastest-growing and most important technology markets. It not only helps Lenovo rapidly expand its leadership there, but it also lays a foundation for the company's future PC+ vision. CCE is an excellent fit with its four screen product portfolio, including PC, tablet, smartphone and TV, and a valuable manufacturing base in Brazil. CCE's management, who will become an essential part of Lenovo's Brazilian operations, know the Brazilian consumer and will immediately help the company establish a strong retail presence.
The acquisition is subject to customary closing procedures and is expected to close in the first quarter of 2013.