QINGDAO, China, July 18, 2024 /PRNewswire/ -- On 18thJuly 2024, Haier Smart Home entered into the transaction with Electrolux Group in Sweden to acquire 100% equity interest in Electrolux South Africa Proprietary Limited ("ESA"), its subsidiary engaging in water heater business in South Africa, for an enterprise value of ZAR 2.45bn (approx. RMB 980m).
South Africa is the second largest economy in Africa with a population of 61.4 million. ESA owns the century-old water heater brand Kwikot that specializes in diversified products and solutions of electric water heaters, solar water heaters, multi-energy solutions, gas water heaters and heat pumps. It is the leading water heater manufacturer in South Africa, with a double-digit EBITDA margin. Kwikot operates well-established distribution channels, installation network and after-sales service system to provide users with speedy response and quality services.
The acquisition is an important step in the strategic implementation of Haier Smart Home's development in African market.
Leveraging Kwikot's extensive 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 potentials in solar water heaters and water purifiers. In addition, Haier Smart Home will also accelerate its refrigerators and laundry businesses with the help of Kwikot's strong local distribution channels.
The acquisition is not only significant to Haier Smart Home's Middle East & Africa strategy, it is also integral to 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 annual production capacity exceeding 1.5 million units of air conditioners, washing machines, televisions, refrigerators and freezers. Haier Smart Home has been able to double its revenue every year for the past three years in Middle East and African markets where its freezers ranked number one in Nigeria, high-end air conditioners revenue grew 122% cumulatively in Egypt and high-end washing machines grew 30% in Ghana.
The transaction is subject to regulatory approvals and is expected to complete in the fourth quarter of 2024. The financial adviser is ING Bank and the legal counsel is DLA Piper.
?About Haier Smart Home?
Founded in 1984, Haier Smart Home, one of the subsidiaries of Haier Group, is a leading global provider of solutions for a better and smarter life, and is the world's largest home appliance manufacturer.
The Company listed its A shares on the Shanghai Stock Exchange in 1993, listed its D shares on the China Europe International Exchange in Frankfurt, Germany in 2018, and listed its H shares on the Hong Kong Stock Exchange in 2020, realizing the "A+D+H" global capital market layout. Haier Smart Home has 100,000+ employees globally, including more than 1/3 foreign employees.
Haier Smart Home has built up seven world-class premium home appliance brand clusters globally, including Haier, Casarte, Leader, GE Appliances of the United States, Fisher&Paykel of New Zealand, AQUA of Japan, and Candy of Italy, and created the world's first scenario brand, SANYINIAO, which defines the most suitable smart home solutions for users; meanwhile, the Company is exploring the eco-brand of smart life, which defines unlimited links with users and perpetual service.
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