QINGDAO, China, July 18, 2024 /PRNewswire/ – On July 18, 2024, Haier Smart Home completed a transaction with Electrolux Group of Sweden to acquire 100% of the shares of Electrolux South Africa Proprietary Limited (“ESA”), its subsidiary engaged in the water heater business in South Africa, at an enterprise value of ZAR 2.45 billion (approximately RMB 980 million).
South Africa is Africa's second largest economy with a population of 61.4 million. ESA owns the century-old water heater brand Kwikot, which specializes in diversified products and solutions across electric water heaters, solar water heaters, multi-energy solutions, gas water heaters and heat pumps. The company is South Africa's leading water heater manufacturer with a double-digit EBITDA margin. Kwikot operates well-established distribution channels, installation network and after-sales service system to provide users with fast response times and quality services.
The acquisition is an important step in the strategic implementation of Haier Smart Home’s development in the African market.
Leveraging Kwikot's comprehensive HVAC channel and service coverage, Haier Smart Home will realize synergies in product and supply chain management to expand Kwikot's water heater lineups and unlock potential in solar water heaters and water purifiers. In addition, Haier Smart Home will also drive its refrigerator and laundry business with the help of Kwikot's strong local distribution channels.
The acquisition is not only significant for Haier Smart Home's strategy for the Middle East and Africa, but also an integral part of its global brand portfolio. In May this year, Haier Egypt Eco Park was officially opened. It covers an area of 200,000 square meters with an annual production capacity of over 1.5 million units of air conditioners, washing machines, TVs, refrigerators and freezers. Haier Smart Home has doubled its sales in the Middle East and Africa markets every year for the past three years, with its freezers being number one in Nigeria, sales of high-end air conditioners in Egypt increasing cumulatively by 122% and sales of high-end washing machines in Ghana increasing by 30%.
The transaction is subject to regulatory approval and is expected to close in the fourth quarter of 2024. ING Bank is acting as financial advisor and DLA Piper is acting as legal advisor.
【About Haier Smart Home】
Founded in 1984, Haier Smart Home, a subsidiary of Haier Group, is a global leader in solutions for a better and smarter life and the world's largest manufacturer of home appliances.
The company listed its A shares on the Shanghai Stock Exchange in 1993, its D shares on the China Europe International Exchange in Frankfurt, Germany in 2018, and its H shares on the Hong Kong Stock Exchange in 2020, thus realizing the global capital market structure of “A+D+H”. Haier Smart Home employs more than 100,000 people worldwide, including more than a third of foreign employees.
Haier Smart Home has built seven clusters of first-class home appliance brands worldwide, including Haier, Casarte, Leader, GE Appliances from the US, Fisher&Paykel from New Zealand, AQUA from Japan and Candy from Italy. It has also created the world's first scenario brand SANYINIAO, which defines the most suitable smart home solutions for users. At the same time, the company is exploring the eco-brand “Smart Life” which defines unlimited connections with users and eternal service.
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SOURCE Haier Smart Home
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