Elica exits Indian JV stake while preserving lucrative South Asia brand deal

The latest announcement is out from Elica S.p.A. ( (IT:ELC) ).

Elica S.p.A. has sold its remaining 1.59% stake in Indian subsidiary Elica PB Whirlpool Kitchen Appliances Private Limited to Whirlpool of India Limited, alongside other minority shareholders who divested an additional 1.59%, giving Whirlpool full ownership of the unit. The transaction, triggered earlier than planned by a change of control at Whirlpool of India, generated gross proceeds of about €2.5 million for Elica, paid in a single installment.

Despite the exit from the shareholding structure, Elica’s Trademark & Technical License Agreement signed in September 2024 with Elica PB India remains in force, granting exclusive use of the Elica brand in India and non-exclusive rights in Nepal and Bangladesh for kitchen and cooking products until 2038. This agreement secures Elica a growing royalty stream with a minimum expected benefit of roughly €23 million, allowing the company to maintain brand presence and revenue exposure in South Asian markets without direct operational involvement in the Indian JV.

The most recent analyst rating on (IT:ELC) stock is a Hold with a EUR1.70 price target. To see the full list of analyst forecasts on Elica S.p.A. stock, see the IT:ELC Stock Forecast page.

More about Elica S.p.A.

Elica S.p.A. is an Italian manufacturer of household appliances dedicated to cooking, with over 50 years of history and global leadership in kitchen extraction systems. The company is also a key European player in electric motors for household appliances and heating boilers, employing around 2,600 people across its Fabriano headquarters and seven plants in Italy, Poland, Mexico and China.

Average Trading Volume: 32,394

Technical Sentiment Signal: Strong Sell

Current Market Cap: €73.77M

See more data about ELC stock on TipRanks’ Stock Analysis page.