Arçelik, group that owns the home appliance brands Beko and Grundig, and the Hitachi Global Life Solutions Business Unit signed a historic partnership on 16 December. A strategic agreement which aims to create a joint venture in the global household appliances business (excluding Japan): thus a new player is born in the Asia-Pacific area, which is also the largest global market in the household appliances sector. The main objective, explains a note, is to expand global sales of Hitachi-branded products, through a competitive and joint distribution chain.
From a financial point of view, the agreement provides for the establishment of a joint venture through the following transaction, valued at 300 million US dollars: Hitachi GLS will establish a new company in which it will transfer its global appliance business outside of Japan. Arçelik will therefore acquire 60% of the capital of the new company, to be incorporated by Spring 2021, subject to regulatory approvals and compliance with other statutory conditions. The joint venture will therefore manufacture, sell and provide Hitachi-branded after-sales services (including refrigerators, washing machines, vacuum cleaners, etc.) globally and outside the Japanese market.
The new company has approximately 3.800 employees, for total current revenues of approximately $1 billion. “Arçelik – explains the note – in recent years has ceaselessly expanded the home appliance business to over 145 countries around the world. The company has grown significantly in Europe as well as in South Asia over the past decade. Hitachi GLS is currently present with its home appliances mainly in Southeast Asia and the Middle East, where it enjoys a high-end brand image”.
