financial report and registration document 2011 - Groupe SEB

Financial Report and Registration Document 2011
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Presentation of the Group
Milestones in the history of the Group
1.2. MILESTONES IN THE HISTORY OF THE GROUP
Groupe SEB dates from 1857 with the creation of the company Antoine Lescure, in Burgundy, France. Beginning as a tinware company specialised in
making buckets and watering cans, it gradually expanded its activities to include kitchen utensils, zinc tubs and other articles. It began to mechanise
production when it bought its fi rst press at the beginning of the 20th century. At that time, the company’s business was confi ned to its local region.
It took a major stride forward in 1953 when it launched the pressure cooker. This gave the company, thereafter called Société d’Emboutissage de
Bourgogne, a new national dimension.
The subsequent history of the Group would take shape through successive phases of acquisitions and organic growth.
External growth: a dynamic acquisition strategy
A series of acquisitions over the last 40 years has enabled Groupe SEB to
diversify its activities and expand internationally.
CREATION OF THE GROUP
In 1968, SEB acquired Tefal, a company specialised in nonstick cookware;
in 1972, it took over the Lyon-based company Calor, a maker of irons, hair
dryers, small washing machines and portable radiators. This established
SEB as a leading operator in Small Domestic Equipment in France. In 1973,
it decided to form a group structure under a lead holding company, SEB S.A.,
which would be listed on the Paris Stock Exchange in 1975.
GLOBAL STATUS
The 1988 acquisition of Rowenta, whose German and French factories made
irons, electric coffee makers, toasters and vacuum cleaners, was a crucial
step in the Group’s international expansion. In 1997-1998, the takeover of
Arno, Brazil’s market leader in small domestic appliances, established the
Group in South America. Arno was a specialist in the manufacture and sale
of food-preparation appliances (mixers/blenders), non-automatic washing
machines and fans. At the same time, the Group acquired Volmo, a leading
producer of small domestic appliances in Colombia and Venezuela, with
its own product range in food-preparation appliances (mixers/blenders),
fans and irons.
September 2001 saw Moulinex, the Group’s main rival in France, file
for bankruptcy. Groupe SEB’s offer of a partial takeover of the assets of
Moulinex and its subsidiary Krups was accepted by the Nanterre Commercial
Court in October 2001. The integration of that portion of Moulinex-Krups
confi rmed the global stature of Groupe SEB through a stronger presence
in certain product categories and the addition of two international brands.
After much legal debate at the European Commission and in France, the
fi nal authorisations for the takeover were obtained in 2005.
Meanwhile, in the summer of 2004 the Group took the opportunity to
strengthen its base in the United States with the acquisition of All-Clad,
a premium-range cookware specialist whose product offer was an ideal
complement to the fairly broad T-fal brand on the US market. In May
and June 2005, the successive acquisitions of Lagostina (Italy) and Panex
(Brazil) further strengthened the Group’s cookware business. Lagostina,
Italy’s leader in top-of-the-range stainless steel saucepans, frying pans and
pressure cookers, has a prestige brand image and provides the Group with
access to new markets. Meanwhile, Panex, with its four brands at the top of
ranges which extend over several market segments, helped us to penetrate
the Brazilian market with an extensive cookware offer and instantly occupy a
front-ranking position. The acquisition of Panex further bolstered our strong
presence in the country in small domestic appliances with the Arno brand.
In August 2006, the acquisition of selected assets of the American company
Mirro WearEver, which deals in entry-level cookware, helped bolster the
Group’s infrastructure in this area, allowing for a more focused repositioning
on mid-range T-fal articles and the introduction of new dynamics. Groupe
SEB accordingly became leader of the North American market in cookware
with an exhaustive offering covering all market segments – from simple and
functional “basic” products to All-Clad premium products.
In the same year, the Group initiated a process to buy a majority stake in
Supor, China’s domestic market leader in cookware and no. 3 in small electric
cooking appliances. As Supor is listed on the Shenzhen Stock Exchange
and as this kind of transaction was without a precedent in China, the deal
required various authorisations from China’s Trade Ministry (MOFCOM) and
the country’s securities regulator (CSRC). Having acquired an initial 30%
stake in Supor’s capital on 31 August 2007, the Group raised this to a 52.74%
controlling stake in Supor on 21 December 2007 following a successful
public share purchase offer. Further to exercises of stock options by some
Supor executives, the Group’s shareholding in the Chinese company was
slightly diluted, to 51.31%. Acquiring controlling interests in Supor is a
major strategic step forward because it allows the Group to tap into the
huge potential of the Chinese market. These interests were strengthened
in December when the Group fi nalised the acquisition of an additional 20%
stake in the company, purchased from Supor’s founders (the Su family),
who wished to reduce their capital-intensive commitment. This transaction
consolidated the initial investment made in 2007 with a view to ensuring
Supor’s ability to sustain growth over the medium-to-long term with a stable
shareholder base.
GROUPE SEB
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