Philips gets a boost from Saeco espresso buy out

THE electronics giant behind the Senseo brand of coffee makers, Philips, has agreed to buy&nbsp; Europe&rsquo;s largest maker of espresso machines, Saeco, for an undisclosed sum.<br /><br />The Italian based firm Saeco had sales of &euro;318m (&pound;280m) over the 12 months ended 31 March, Philips said.<br /><br />Saeco makes machines branded under the Saeco and Gaggia names, as well as making machines for Lavazza and others, effectively controlling 30 per cent of the European market. Saeco currently employs around 1,400 people through its 16 subsidiaries.<br /><br />Saeco is controlled by private equity firm PAI Partners. Philips said that the completion of the takeover in part depends on a final agreement with Saeco&rsquo;s banks with which the Italian company has outstanding credit obligations.