Philips acquires Italian espresso maker Saeco

Royal Philips Electronics NV said Monday it plans to acquire Saeco International Group SpA, Europe's largest maker of espresso machines, for an undisclosed sum.

Based in Gaggio Montano, Italy, Saeco had sales of euro318 million over the 12 months ended March 31, Philips said.

Saeco makes machines branded under the Saeco and Gaggia names, as well as making machines for Lavazza and others.

Saeco is controlled by private equity firm PAI Partners. Philips said the deal is contingent on reaching a deal with Saeco's creditors on assuming the company's debts.