Haier Smart Home Co., Ltd. (“Haier”), a world-leading home appliance company, today announced the successful acquisition of Electrolux South Africa Proprietary Limited (ESA), a subsidiary of the Electrolux Group specializing in water heating solutions in South Africa. The acquisition, valued at ZAR 2.45 billion (approximately $138.7 billion USD), marks a significant step in Haier’s expansion into the African market. By welcoming Kwikot into the Haier family, the company strengthens its position as a global leader in the appliance industry while driving innovation and sustainable growth in South Africa and the broader Middle East and Africa (MEA) region.
Founded in 1903, Kwikot is a trusted leader in water heating innovation in South Africa. With its diverse product portfolio, comprehensive manufacturing capabilities, market leadership, and robust distribution network, Kwikot provides a strong foundation for Haier’s growth in the region. Kwikot operates the largest water heater manufacturing facility in the country, supported by a comprehensive after-sales service network and an experienced local management team. The company’s sales channels encompass both national retailers and independent stores, facilitating immediate market access for Haier.
This acquisition further strengthens Haier’s global performance and market presence. In 2023, Haier reported total revenue of CNY 261.43 billion (approximately $35.9 billion USD), representing a 7.33% year-on-year increase. Net profit attributable to shareholders reached CNY 16.6 billion (approximately $2.28 billion USD), marking a 12.81% rise. Kwikot’s financial performance aligns with Haier’s growth trajectory, with net sales in 2023 exceeding ZAR 1.9 billion (approximately CNY 753 million) and a positive EBITDA margin. The acquisition also presents an opportunity for Haier to introduce its broader range of home appliances, including refrigerators and washing machines, to South African consumers.
The acquisition unlocks new opportunities for both brands in the MEA region. Statista forecasts that revenue in the MEA home appliance market will grow from $88.3 billion USD in 2023 to $131.8 billion USD in 2029. The Haier Egypt Ecological Park, launched earlier this year, complements Kwikot’s expertise, creating a collaborative strategic platform for regional growth.
Kwikot’s long-standing history of developing skilled local talent aligns with Haier’s mission to foster business and social growth in the communities it serves. Haier plans to seamlessly integrate the Kwikot team, ensuring a balanced organizational structure while delivering cutting-edge, environmentally conscious products tailored to the needs of South African consumers.
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