Chinese company Haier Electronics, through its subsidiary Haier Europe, has acquired the Italian home appliance manufacturer Candy, owned by the Fumagali family, for 475 million euros.
The operation, announced last Friday, September 28th, is expected to be completed in 2019, subject to approval by market regulators. One of the first measures taken by the Qingdao-based group, listed on the Shanghai Stock Exchange, is the relocation of its European headquarters and design center to Brugherio, in Monza province, where Candy's current headquarters are located.
Negotiations between Haier and the Fumagali family began a few months ago, but sources close to the matter indicate that the initial objective was the sale of 20% of Candy's capital. The deal now announced covers all the shares and should allow Haier to accelerate its growth in Europe. This objective was reaffirmed a few weeks ago, within the framework of its participation in IFA in Berlin, with a commitment to invest one billion euros.
Candy is the latest example of a historic Italian appliance manufacturer being acquired by a foreign investor. The same thing happened a few years ago with Indesit Company, founded by the Merloni family, which was bought by the American company Whirlpool.
Founded in 1989, Haier is the world's largest manufacturer of household appliances (for the ninth consecutive year) and a leader in the washing machine segment, with a 14,3% market share, according to Euromonitor International data. The Chinese group has been consolidating this position through mergers and acquisitions, such as the recent one, which also includes the purchase of General Electric's appliance division for €5.400 billion. It is included in Fortune magazine's list of the 500 largest companies and, in 2017, had a turnover of €32.069 billion, a 20% growth based primarily on its high-end products. Candy's sales reached €1.140 billion, a 10% increase. Haier owns six global brands: Haier, GE Appliances, Fisher & Pakyel, AQUA, Casarte, and Leader. After the deal is finalized, it will also include brands such as Candy, Hoover, and Rosières.
The Italian manufacturer has been heavily investing in the development of smart home appliances. Haier aims to expand its leadership in smart home appliances in Europe, in the current era of the Internet of Things. Its portfolio is complementary to Candy's in terms of brands and products, as well as distribution chains. The agreement is expected to allow both companies to better respond to the growing demand for personalized home appliances. “ In the era of the Technology of Things and leveraging its strong research and development capabilities, the Candy Group is dedicated to applying cutting-edge technologies and connectivity to traditional home appliances, which aligns perfectly with Haier's strategy and objectives. The strategic cooperation between Haier and the Candy Group will not only unlock the potential of the smart home appliance market, but will also inspire the sector to continue to update itself to improve the customer experience ,” says Liang Haishan, Chairman of the Board of Directors of Haier.
