Haier Group has acquired Candy Group from the Fumagalli family for €475m, with the announcement following the Chinese group unveiling plans for a potential public listing on the Frankfurt Stock Exchange as well as a $1bn investment programme over the next four years.
The Qingdao-based household refrigerator and home freezer manufacturing company Haier Group had said it had bought out the two Italian partners in Candy.
Following the deal – which is expected to close in early 2019 – Haier’s European headquarters will now be based in Brugherio, Italy. The group said it will “continue to invest in Candy to enhance its competitiveness in Europe and globally”.
Haier Group Corporation is a Chinese collective multinational consumer electronics and home appliances company headquartered in Qingdao, Shandong province, China. Run by a charismatic CEO Zhang Ruimin, it designs, develops, manufactures and sells products including air conditioners, mobile phones, computers, microwave ovens, washing machines, refrigerators, and televisions.
According to market data released the Haier brand reportedly has the world's largest market share in white goods, with 10.2%retail volume market share, in 2014.
“In the era of IoT and leveraging its strong research and development capabilities, Candy Group is dedicated to applying network technologies to traditional home appliances, which perfectly aligns with Haier’s ‘eco-brand’ strategy,” said Haier chairman Liang Haishan.
“We believe this transaction marks the beginning of a successful strategic cooperation between Haier and Candy Group, which will not only unlock the potential of the smart home appliance market, but also inspire the sector to continue to upgrade in order to improve customer experience.”
In 2017, Candy Group reported growth of 14% for the financial year ending on 31st December 2017, marking turnover of €1.15bn as well as an EBIT of €44m. The company said it has seen a 0.4% increase in its market share in Europe, with 21% of its turnover achieved in the UK.
Candy manufactured the first Italian washing machine in 1945 and went on to invent the modern front loading washing machine in the late 1950’s. As such, Candy quickly became synonymous with washing throughout Italy.
Having come a long way from its humble roots, previous owners Beppe and Aldo Fumagalli said: “We look forward to joining Haier. Qingdao Haier and Candy share the same vision, which is to continue to improve the quality of family life.
“We believe that Candy’s innovation capabilities and Italian design, technology and style will fit perfectly with Qingdao Haier’s operating model. Together, we will better meet the increasing demands for more individualized products, and make people’s lives better and easier.”
