Value added.

The acquisition of Miele Kitchens
Entering the premium segment and
a broader international market
On 1 September 2005, AFG Arbonia-Forster-Holding AG acquired the Miele Kitchens production and
distribution business from Miele & Cie. KG, a German company based in Gütersloh. The unit, based in
Warendorf in the German Westphalia region, manufactures high-end, design-oriented kitchens,
which are marketed under the brand “Miele Die Küche” (in German-speaking countries). The acquisition
of Miele Kitchens gives the Kitchens and Refrigeration Division access to the top end of the
kitchen manufacturing market, and enables AFG Arbonia-Forster-Holding AG to embark on a key
strategic process of internationalisation. Miele Kitchens generates annual sales of around EUR 33 million,
around 60 % of which comes from outside the German market.
With AFG Arbonia-Forster-Holding AG’s takeover of Miele Kitchens on 1 September
2005, a unit of secondary importance for the Miele Group has advanced to become one of
AFG Arbonia-Forster-Holding AG’s core businesses. Following the acquisition, the kitchen
manufacturing unit was spun off from the Miele Group and integrated into AFG Arbonia-
Forster-Holding AG as part of its Kitchens and Refrigeration Division. All 268 employees were
kept on.
Warendorfer Küchen GmbH manufactures premium segment kitchen fittings featuring
high-quality materials, exclusive design and outstanding ease of use. Miele Kitchens
and the “Miele Die Küche” brand (used in German-speaking countries) ideally complement
the group’s existing kitchen range marketed under the Forster and Piatti brands. The acquisition
of Miele Kitchens marks another important step towards AFG Arbonia-Forster-Holding
AG’s goal of becoming a leading international supplier of kitchens to the building trade, able
to offer a comprehensive range of products and services under the “one building – one stop”
banner.
The acquisition gives the division specific know-how in the industrial manufacture
of high-quality kitchens and access to production capacities that, depending on the order
situation, can in future also be used for the manufacture of Forster and Piatti kitchens.
Strong in Europe
Miele Kitchens’ largest single market is Germany, which accounts for almost 40 % of sales.
More than 60 % of the unit’s production is exported to countries outside Germany. Its core
markets are the UK, Portugal, Spain, Austria, Greece, and the Benelux countries. Since the
acquisition by AFG Arbonia-Forster-Holding AG, the development of Warendorfer Küchen
GmbH’s sales has been stable. While sales in Germany have declined slightly reflecting a weak
market, export sales have increased, thanks in particular to wholesale business. Membership
of the AFG Arbonia-Forster-Group, whose Kitchens and Refrigeration Division is already one
of the leading manufacturers of kitchens in Europe, will have a positive impact on Miele
Kitchens sales.