Published on December 17th, 2020 | by The GC Team0
Beko parent Arçelik acquires 60% of Hitachi’s global appliances business
Turkey’s Arçelik – parent of brands such as Beko, Blomberg and Grundig – has confirmed an agreement with Hitachi Global Life Solutions to establish a new joint venture company into which the Japanese firm will transfer its global home appliances business outside of Japan.
Arçelik will acquire 60% ownership in the new company at a transaction value calculated as USD 300 million on a cash-free and debt-free basis. Both partners aim to establish the new company in spring 2021.
The partnership creates a major player in Asia-Pacific – the world’s largest home appliances market – and will expand global sales of Hitachi-branded products.
The joint venture will manufacture, sell and provide after-sales services of Hitachi-branded home appliances (including refrigerators, washing machines, vacuum cleaners etc.) globally outside of the Japanese market. Both partners will benefit from their complementary geographic coverage of sales channels and product line-ups as well as management synergies arising from the collaboration.
The two companies will also combine their expertise in other key areas such as R&D, procurement and production systems in order to optimise the joint venture’s global supply chain and strengthen its competitive positioning in the market.