Cases & Deals

Procter & Gamble sells perpetual licensing of Braun brand for use in household small appliances to De'Longhi

Client(s) Procter & Gamble Company, The

Jones Day advised The Procter & Gamble Company in the sale of its household appliances business conducted under the "Braun" trademark to De'Longhi, S.p.A. for a total consideration of €140 million ($183.7 million) and an earnout opportunity of an additional €74 million ($97 million). The agreement includes a perpetual licensing of the Braun brand, owned by P&G, for the manufacture and supply of small electrical household appliances, including food preparation appliances, kettles, coffee machines, and irons. The Braun business associated with the transaction has revenues of approximately €200 million, mainly concentrated in European markets.

The transaction value (excluding the inventory which will be determined at a later stage) is divided into three components:  (i) €50 million paid on 31 August 2012, simultaneously with the signing of the agreements; (ii) €90 million (in net present value) together with accrued interests, split over the next 15 years, in constant annual payments, and (iii) a variable portion, or “earn-out”, connected to the performance of the sales (“CAGR”) under the Braun brand over the first five years after the closing of the deal, with a minimum and maximum value of €0 and €122.1 million, respectively (not discounted).

In addition to M&A representation, Jones Day provided antitrust, intellectual property, and employee benefits advice regarding this transaction.