Published on October 2nd, 2018 | by The GC Team0
Haier continues expansion with acquisition of Candy
Qingdao Haier Co. Ltd., which claims top global position by sales among home appliance manufacturers, has further advanced its global expansion and drive to be a world leader in smart home appliances with the announced acquisition of Italian domestic appliances manufacturer Candy, owner of the Hoover brand since 1995, for a reported £422.8 million.
According to a disclosure filed by Haier on Saturday with the Shanghai Stock Exchange, the board approved the deal on Friday and a wholly-owned European unit of Haier will pay in cash to acquire 100% of Candy S.p.A. from Candy’s current owners and founders, the Fumagalli family. The deal will require approval by regulators in China, the European Union, Russia, Turkey and Ukraine, says Haier.
Candy said in a statement: “Qingdao Haier and Candy are highly complementary in brand and product portfolios, as well as supply chains. The combination is expected to further enhance both sides’ competitiveness in the European and global markets. The innovation and synergies between the two companies in smart home appliances will also bring a totally new customer experience.”
On successful completion of the deal, Haier’s European headquarters will be in Brugherio, Italy, where Candy is currently based.
Candy, founded some seven decades ago, has production plants in Italy, Turkey, Russia and China and manufactures washing machines, refrigerators and kitchen appliances. Washing machine sales contributed around 50% of Candy’s total revenues of £1.02 billion last year, and some 68% of its turnover comes from within the EU. The UK, France and Italy are its top three markets.
Haier has been pursuing a global expansion through acquisition policy for some time. In 2011 the Group took over Sanyo Electric’s washing machine and consumer refrigeration businesses in Japan and some Southeast Asian countries; in 2012 white goods manufacturer Fisher & Paykel was acquired; and in 2016 Haier paid some £4.25 billion for the appliance unit of US company General Electric.
The Chinese giant said in a press statement: “By joining forces with Candy’s management team, Haier aims to expand its leadership in smart home appliances in Europe.”