AMSTERDAM (AP) -- Royal Philips Electronics NV said Monday it has bought Italian espresso machine maker Saeco International Group SpA for euro170 million ($242 million).
Philips announced it was in talks to buy Saeco in May, but didn't then disclose proposed terms of the deal.
Based in Gaggio Montano, Italy, Saeco is Europe's largest maker of espresso machines, with 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.
In the deal announced Monday, Philips will pay the company's creditors -- who were not named -- the entire euro170 million, with an additional euro30 million due "dependent on certain conditions," Philips said without elaborating.
Saeco was owned by private equity firm PAI partners.