Chinese giant buys 100-year-old South African company

South African water-heating provider, Kwikot, has been purchased by Haier Smart Home – the world’s biggest home appliance brand in terms of revenue.

Founded in 1903, Kwikot sells electric water heaters, solar water heaters, gas water heaters, heat pumps and more.

Chinese-based Haier Smart Home is a Fortune 500 company and is known for innovation in smart home products. Its brands include Haier, Casarte, Aqua and Candy.

The move forms part of a larger deal announced by Haier Smart Home in July, where it would acquire 100% equity in the Swedish-based Electrolux Group’s South African subsidiary.

Electrolux South Africa Proprietary Limited owns Kwikot, and the transaction had an enterprise value of R2.45 billion.

“Kwikot has built a legacy of trust and innovation across South Africa for more than a century. Today, as we join forces with Haier, we embrace an incredible opportunity to deliver even smarter, more sustainable solutions to our customers,” said Murray Crow, Managing Director of Kwikot.

“Haier’s expertise, commitment to environmental leadership, and focus on customer-centric innovation align perfectly with the values that have made Kwikot a household name. Together, we will redefine possibilities and shape a brighter future for everyday living.”

Jiangyong Guan, Vice President of Haier Smart Home, General Manager of WHs Industry and Internet of Water Platform, said that the group is committed to assisting with Kwikot’s continued growth.

“Haier doesn’t just acquire companies, we invest in their heritage, employees and long-term success. Kwikot’s remarkable history and market leadership are a testament to its exceptional team and customer trust,” said Guan.

“By combining our global expertise in smart and sustainable solutions with Kwikot’s strong local network and legacy, we’re poised to deliver transformative growth and innovation tailored to South African homes and beyond.”

The groups said that the partnership should redefine industry standards and deliver market, more sustainable home products that improve everyday living.

“By combining Kwikot’s deep-rooted legacy and trusted local presence with Haier’s global innovation and commitment to ESG leadership, this partnership promises to drive meaningful impact, offering customers the best of both worlds,” said the groups.

Joins the list

The Kwikot and Haier deal joins a growing list of international companies buying local players.

In October, Canadian-based Syntax Systems bought Argon Supply Chain Solutions.

Argon is a South African and UK-based SAP service provider founded in 2011, which provides Warehouse and Stock Management services. Its customers include Pick n Pay, Sasol, Dis-Chem, Makro and more.

Syntax Systems is a global technology services provider for cloud application implementation and management. It has 900 customers across the globe, with partners including Microsoft and SAP.

“The Argon team is renowned for its market-leading knowledge and Digital Supply Chain excellence through their partnership with SAP,” said Christian Primeau, Global CEO of Syntax.

“By welcoming the Argon team to the growing Syntax family, we are expanding our capabilities and infusing a critical component within our core industry verticals.

It was also recently announced that the UK-based Frasers Group would purchase the Holdsport Group, which owns Sportsmans Warehouse, Outdoor Warehouse and Shelflife.

Frasers, which owns House of Fraser and Sports Direct, is buying Holdsport from Old Mutual Private Equity (OMPE) and Holdsport’s management.

It was also announced that HIFI FILTER has acquired FILVENT Holdings, one of the largest players in the filtration market in South Africa.

The Swiss family-owned group, which was founded in 1977 has 50,000 sqm of storage capacity and is the largest filter distributor in Europe.

The company said that the acquisition showcases its desire to expand its international presence, especially in Africa.

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