Electrolux snaps up South African company for R3.2 billion
Swedish multinational home appliance manufacturer, Electrolux says it has agreed to acquire South African based water heater producer Kwikot Group, for R3.18 billion.
The acquisition Electrolux said, broadens its home comfort product range and offers a strong platform for growth opportunities in Africa.
In the financial year ending June 30, 2016, Kwikot Group had sales of approximately R1.13 billion, and an operating profit margin of more than 20%.
With about 800 employees, Electrolux said that its the acquisition of Kwikot significantly strengthens its presence in the region. The privately owned company is based in Johannesburg where it also has production and its main warehouse.
The products, which include large capacity electric and solar water heaters, heat pumps, consumables and accessories, are sold primarily in South Africa and neighboring countries.
“Acquiring Kwikot Group will provide a step change for Electrolux in southern Africa, through the complementary product offering, access to important customer segments and by adding a strong distribution and service network in the region relevant for our other product categories,” said Dan Arler, head of Electrolux Major Appliances Europe, Middle East and Africa.
Electrolux said it currently supplies small and medium capacity water heaters in Northern Africa.
The acquisition is subject to regulatory approvals being obtained latest June 30, 2017.
Under brands including Electrolux, AEG, Zanussi, Frigidaire and Electrolux Grand Cuisine, Electrolux sells more than 60 million products to customers in more than 150 markets every year, and boasts more than 58,000 employees.
Read this: This South African company just paid its CEO R100 million
Loading ...