On 18th July 2024, Haier Smart Home entered into the transaction with Electrolux Group in Sweden to acquire 100% equity interest in Electrolux South Africa Proprietary Limited , its subsidiary engaging in water heater business in South Africa, for an enterprise value of ZAR 2.45bn .
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.
