Haier Smart Home has entered into an agreement with Sweden’s Electrolux Group to acquire a 100 percent stake in Electrolux South Africa Proprietary Limited (ESA).

The South African subsidiary has a water heating business worth $137 million.

South Africa is Africa’s second largest economy, with a population of 61.4 million.

ESA owns the century-old Kwikot brand, which specialises in diversified products and solutions in the field of electric boilers, solar boilers, multi-energy solutions, gas boilers and heat pumps.

It is the leading manufacturer of boilers in South Africa, with a double-digit EBITDA margin. Kwikot operates well-established distribution channels, installation network and after-sales service system to provide users with fast response and quality services.

The acquisition is an important step in the strategic implementation of Haier Smart Home development in the African market.

By leveraging Kwikot’s extensive HVAC channel and service coverage, Haier Smart Home can realize synergies in product and supply chain management, expanding Kwikot’s boiler range and unlocking opportunities for solar boilers and water purifiers.

In addition, Haier Smart Home will also accelerate its refrigerator and laundry businesses with the help of Kwikot’s strong local distribution channels.

Haier Smart Home has doubled its sales every year for the past three years in the Middle East and Africa markets. For example, freezers were number one in Nigeria, sales of premium air conditioners increased by 122 percent in Egypt and sales of premium washing machines grew by 30 percent in Ghana.

The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of 2024.

Haier Smart Home, founded in 1984, is one of the subsidiaries of Haier Group and is the largest manufacturer of home appliances in the world.

Haier Smart Home has built seven first-class home appliance brand clusters globally, including Haier, Casarte, Leader, GE Appliances from the United States, Fisher&Paykel from New Zealand, AQUA from Japan and Candy from Italy, and the world’s first scenario brand, SANYINIAO.