KUALA LUMPUR: Signature International Bhd is acquiring a 23.67 per cent stake, or 120 million shares, in Fiamma Holdings Bhd for RM180 million.

       The kitchen cabinet manufacturer said the proposed acquisition is for the group to tap into Fiamma's extensive distribution and servicing network for home and kitchen electrical appliances.

       "The proposed acquisition is line with the group's objective of acquiring strategic stakes in profitable companies within the industry supply chain for future growth,” said managing director Chiau Haw Choon in a statement.

       "We have observed exciting prospects in Fiamma, which has been a significant uptick in demand for its products due to the COVID-19. The pandemic has resulted an increase in demand for electrical household products and accordingly increased the sales in Fiamma's trading and services segment."

       Fiamma, whose main business is in home and kitchen electrical appliances, owns many respectable in-house brands such as Elba, Faber, Rubine, Tuscani, and Haustern.

       It also hold distribution rights for the international brands of medical devices and healthcare products, namely Braun, Speed Queen, Omron, and Beurer.

       Chiau said the consolidation of Fiamma's equity interest is expected to increase the profitability and strengthen the financial position of Signature.

       The Fiamma deal is expected to be completed within four months from the date of conditional share sale agreement. Fiamma is principally an investment holding company, while its subsidiaries are principally involved in trading and services, property development, investment holding and property investment. - Bernama