On the evening of September 28th, Qingdao Haier announced that it intends to pay 475 million euros through Haier Europe, a wholly-owned subsidiary of the overseas bank (according to the central parity of the RMB exchange rate of the inter-bank foreign exchange market announced by the People's Bank of China on September 28, 2018, equivalent to RMB About 3.805 billion yuan) Acquired 100% of the Italian appliance manufacturer Candy (Cadi).
Qingdao Haier plans to acquire Candy
Qingdao Haier mentioned in the announcement that Candy Company, established in 1945, is a well-known European home appliance company. Its five major segments include washing machines, freestanding embedded kitchen appliances, small appliances, refrigerators and after-sales services and other businesses. The revenue is 1.16 billion euros. Among them, the washing machine sector is the main source of income for Candy, accounting for 49% of the total revenue. Candy has operations in Europe, the Middle East, Asia and Latin America, with 6 major productions in Europe and Asia. Base, more than 45 subsidiaries and representative offices, and more than 2,000 after-sales service centers with more than 6,000 service specialists.
Prior to this, Candy has repeatedly tried to open up the Chinese market. In 2006, Candy entered the Chinese market by acquiring Guangdong Jinling Electric Co., Ltd., but the results were minimal. In March 2017, Candy and Meiling reached a strategic cooperation, both sides. Announced the joint establishment of a joint venture company, engaged in research and development and sales of washing machine products in the Chinese market.
On the afternoon of September 28th, Qingdao Haier held the 21st meeting of the 9th Board of Directors. The meeting reviewed and approved the announcement on the acquisition of 100% shares of Italian Candy Company.
After the board of directors reviewed and approved the acquisition of Candy, Haier Europe signed an equity purchase agreement with Candy shareholders Beppe Fumagalli, Aldo Fumagalli and Albe Finanziaria Srl on the acquisition of 100% of Candy's shares on September 28, with a consideration of 475 million. Euro. Among them, the three hold 30%, 30% and 40% of the shares of Candy, Beppe Fumagalli is the CEO of Candy, and Aldo Fumagalli is the head of the washing machine business of Candy.
Qingdao Haier said that the factors considered in the pricing of the transaction include the profitability of the target company's business in Europe, cost control, distribution network, factory and R&D center, and potential synergistic value brought by business integration after the company's acquisition. Qingdao Haier is confirming The transaction price process takes into account the individual values of the above factors and the overall value of these factors after integration with Qingdao Haier's existing business. Under the reasonable expectation of these values in the future, Qingdao Haier and the counterparty are under the principle of marketization. 4. The final negotiation confirmed the pricing of the transaction.
Qingdao Haier’s board of directors announced that it intends to further enhance the brand layout through this transaction, increase the expansion of overseas markets, especially the European market, improve product categories, and enhance coverage of different customer groups. At the same time, with the release of synergies, the target company Profitability is expected to increase further, and it is expected to create greater returns for shareholders. However, this transaction involves overseas acquisitions, and it is still necessary to fulfill the filing or approval procedures of relevant government authorities such as the National Development and Reform Commission, the commercial department, the foreign exchange administration, etc., and must pass the EU. Antitrust review in jurisdictions such as Russia, Turkey and Ukraine.
Chinese home appliance companies frequently launch overseas mergers and acquisitions
For Chinese home appliance companies that are expanding overseas markets, overseas mergers and acquisitions have become an important means of accelerating the international market. Qingdao Haier has included the AQUA brand of Japan Sanyo and the New Zealand home appliance brand Fisher & Paykel in the Haier brand camp. In 2016, Qingdao Haier acquired GEA, the second largest home appliance manufacturer in the US for US$5.6 billion. At present, Qingdao Haier has become the home appliance brand cluster of Haier, GEA, Fisher & Paykel, AQUA, Casa Di, and the six major brands. .
Not only did Qingdao Haier frequently launch overseas mergers and acquisitions, Midea Group and Hisense Group also continued to attack the city overseas, and the home appliance brands that once enjoyed the international market were included.
In 2016, Midea Group completed three consecutive mergers and acquisitions in overseas mergers and acquisitions. In one year, it acquired the Toshiba Life Appliance Co., Ltd., the main body of Toshiba's home appliance business in Japan, the German industrial robot and industrial automation solution provider KUKA and the acquisition of the Italian Central Air-conditioning company Clivet. Subsequently, Midea Group took over Eureka, a vacuum cleaner brand owned by Electrolux, and acquired Servotronix (Gaotron), an Israeli motion control system solution provider, in early 2017.
In November 2017, Hisense Group acquired a 95% stake in Toshiba Imaging Solutions, a subsidiary of Toshiba Corporation of Japan, for a price of 12.9 billion yen. This acquisition allows Hisense to enjoy a package of Toshiba TV products, brands, and operations services. And won the Toshiba TV global 40-year brand authorization.
In May of this year, Hisense Group acquired Slovenian home appliance manufacturer Gorenje for 293 million euros. According to foreign media reports, Qingdao Haier and Hefei Meiling were also presenting olives to Gorenje, only because Hisense Group had the highest bid, so it ended up Hisense.
As one of the major consumer electronics markets in Europe, China's home appliance companies are investing more and more resources to expand. In addition to setting up factories in China and opening R&D centers, China's home appliance companies are also paying close attention to opportunities for mergers and acquisitions in Europe.
Previously, the head of Haier Europe Company once said that the European home appliance market generally showed a steady and rising trend. Haier's market share in Europe was steadily increasing, and brand awareness was getting higher and higher.
For Qingdao Haier, the acquisition of Candy will help it further explore the European market.