JOHANNESBURG, Dec. 3, 2024 /PRNewswire/ -- Haier Smart Home Co., Ltd. ("Haier", 600690.SH, 6690.HK, 690D.DE), a global leader in home appliance innovation, has officially completed its acquisition of Electrolux South Africa Proprietary Limited (ESA), a subsidiary of Electrolux Group specializing in water heating solutions in South Africa. The deal, valued at ZAR 2.45 billion, marks a significant milestone for Haier's expansion in the African market. By bringing Kwikot into the Haier family, the company strengthens its position as a global leader in home appliances while driving innovation and sustainable growth in South Africa and the broader MEA region.
Founded in 1903, Kwikot is a trusted leader in water-heating solutions in South Africa, offering a diverse range of products, along with extensive manufacturing capabilities, market leadership, and a robust distribution network, will provide Haier with a strong foundation for growth in South Africa. Kwikot operates the country's largest water heater manufacturing facility and after-sales service network, supported by an experienced local management team. Its sales channels span national retail chains and independent stores, providing Haier with immediate market access.
The acquisition will further bolster Haier's business performance and global presence. In 2023, Haier reported revenue of RMB 261.43 billion, a year-on-year growth of 7.33%, and net profit attributable to shareholders of RMB 16.6 billion, up by 12.81%. Kwikot aligns with Haier's growth trajectory, with its 2023 net sales of ZAR 1.9 billion (approximately RMB 753 million) and positive EBITDA margin. The acquisition also opens opportunities for Haier to introduce its portfolio of home appliances, including refrigerators and washing machines, to South African consumers.
"This acquisition is more than a business transaction; it's a commitment to legacy, culture, and long-term success. Kwikot's century-long heritage and market leadership reflect the trust and excellence of its team," commented on the acquisition, Guan JiangYong, General Manager of Haier Water Solutions and Vice President of Haier Smart Home. "By combining Haier's expertise in smart, sustainable solutions with Kwikot's extensive local network, we aim to deliver transformational growth and innovation for South African households and beyond."
The acquisition will empower both brands to embrace new opportunities in the Middle East and Africa (MEA) markets. Statista projected the MEA home appliance market's retail revenue will grow from $88.3 billion in 2023 to $131.8 billion by 2029. With Haier Egypt Ecological Park, which was opened earlier this year, complements Kwikot's expertise to create a synergistic platform for regional growth.
General Manager of Kwikot, Murray Crow , remarked, "Kwikot's century-long legacy of trust and innovation finds a natural partner in Haier's commitment to sustainability and customer-centric innovation. Together, we are poised to redefine possibilities and create a brighter future for everyday life."
Kwikot's history of cultivating skilled local talent aligns with Haier's mission to foster economic and social growth in the communities it serves. Haier plans to integrate Kwikot's team seamlessly while delivering advanced, eco-conscious products that resonate with South African consumers.
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