KKR & Co buys 10% in Chinese appliance maker Haier for reported $550 mn
01 Oct 2013
US private equity firm KKR & Co yesterday said that it has acquired a 10-per cent stake in Chinese appliance maker Qingdao Haier Co Ltd, its biggest investment in the country to date.
The New York-based PE firm did not disclose the financial part of the deal, but several media reports said that KKR paid around $550 million.
Founded in 1989, Shandong Province-based Qingdao Haier transformed from an insolvent collectively-owned factory on the brink of bankruptcy into China's biggest home appliance maker.
It manufactures home appliances in over 15,100 different specifications under 96 categories. It has 6,189 patents and 589 software intellectual property rights.
Haier has five R&D centers, 61 trade companies, 21 industrial parks, over 80,000 employees worldwide and sells its products in over 100 countries.
The Shanghai Stock Exchange-listed company posted net income of $534 million in 2012 on revenue of $13.05 billion.
As of 30th June 2013, Qingdao Haier had assets worth $8.85 billion and has a market value of $5.8 billion.
According to the latest figures from China Market Monitor, Qingdao Haier has consistently maintained market leadership positions in major home appliance categories such as refrigerators, washers, air-conditioners and water heaters.
"By the end of 2012, the company entered the crucial 'online' strategic phase of its long-term growth plan. We welcome the world-class investment firm KKR to become our long-term strategic partner which will help us effectively execute our growth strategies. KKR's investment is a strong endorsement of our past achievements and future potential,'' said Qingdao Haier chairman, Liang Haishan.
"Qingdao Haier is one of the most respected Chinese companies with a market leading position, an outstanding historical track record and an outstanding management team. We are delighted to have the opportunity to partner with such an excellent company," said David Liu, member of KKR and CEO of KKR Greater China.