Haier officially Acquires General Electric appliance division for $5.6 billion
New Delhi, India – June 7, 2016 - Qingdao Haier Co., Ltd. (SHA: 600690; “Qingdao Haier”), a Shanghai stock exchange listed company that is 41% owned by Haier Group (“Haier”) and General Electric Company (NYSE: GE; “GE”) has announced the signing of closing documents for Qingdao Haier’s acquisition of GE Appliances from General Electric. It marks the beginning of GE Appliances being part of Qingdao Haier.
As previously announced, GE Appliances will continue to be headquartered in Louisville, Kentucky and operated independently under the day to day direction of the current management team. A board of directors, with representatives from the senior leadership teams of Qingdao Haier and GE Appliances, and two independent directors, will help guide the strategy and operations of the business.
Mr. Zhang Ruimin, Chairman and CEO of Haier Group said: “Haier and GE Appliances have always sought to adapt to changing times and customer preferences. We share the same vision of the future and, by acquiring GE Appliances, both companies will be able to achieve significant synergies. Haier is on an exciting journey as it transforms itself into a true ‘Internet enterprise’, which fosters and cultivates innovation and customer choice. GE Appliances has great employees and a strong global customer base and I am confident that, together, we will be able to embrace the digital era and offer customers the best possible choice and service now and in the future”.
Mr. Liang Haishan, Chairman of Qingdao Haier said: “Today’s announcement is positive news for employees, users, business partners and shareholders. Investing and growing in the U.S. is a key part of Haier’s strategy and the acquisition of GE Appliances will help us accelerate that expansion. We have great respect for and trust in GE Appliances’ talented management team and we look forward to working closely together to create a truly global leader in the design and manufacture of innovative, high-quality home appliances”.
President and CEO of GE Appliances, Chip Blankenship said: “We are excited to become an important part of a global appliance company. Haier loves appliances as much as we do and shares our goal to be the most competitive, innovative and customer-focused company in the world. Together we will find new and better ways to help people improve their lives at home”.
This announcement follows the previously announced Memorandum of Understanding between Haier Group and GE to cooperate globally and pursue joint growth projects in areas including advanced manufacturing, healthcare and Industrial Internet.
Bank of America Merrill Lynch and PwC Corporate Finance are acting as financial advisers to Qingdao Haier. PwC Corporate Finance ran project management for the transaction. White & Case is acting as overseas legal adviser to Qingdao Haier. China International Capital Corporation Limited and King & Wood Mallesons are acting as independent financial advisers and domestic legal advisers to Qingdao Haier, respectively.
About Haier Group
Haier is the world’s leading home appliance provider, with global revenues amounting to US$ 30.3 billion and profits of US$ 2.89 billion in 2015. Its mission is to create innovative home appliances that anticipate the fast-changing needs of consumers all around the world. Haier has been named the number one global home appliance brand every year for the last seven years by Euromonitor International, a world leader in strategy research for consumer markets, and in 2012 the Boston Consulting Group named Haier one of the ten most innovative companies in the world as well as the most innovative company in the consumer and retail category. Its global headquarters are based in the Chinese city of Qingdao and it also has regional headquarters in both Paris and New York to serve its clients in Europe and America. Haier also has 5 R&D centers, 66 trading companies and 21 industrial parks worldwide.
About Qingdao Haier
Qingdao Haier Co., also a subsidiary of Haier Group, is listed on the Shanghai Stock Exchange (SHA: 600690) and focuses on driving innovation in smart home technologies.
About GE Appliances
GE Appliances, a Haier company, makes moments that matter for our owners through our passion for making great appliances and providing unparalleled services. We make with our hands, heads and hearts. We make with integrity, inventiveness and ingenuity. For more than 125 years we have been creating a legacy of invention – we’ve electrified and modernized life, bringing convenience and fun to kitchens. GE Appliances’ products include refrigerators, freezers, cooking products, dishwashers, washers, dryers, air conditioners, water filtration systems and water heaters. For more information on GE Appliances, visit www.geappliances.com.
Disclaimers - This press release, as Haier Group’s introduction of this transaction, does not constitute any supplement, amendment or adjustment to any public announcement made by Qingdao Haier with respect to this transaction; for any information relating to Qingdao Haier and this transaction, please refer to the public announcements made by Qingdao Haier on Shanghai Stock Exchange. This press release does not constitute any representation, warranty, business performance commitment or guarantee of Haier Group or Qingdao Haier in respect of the target assets of this transaction, nor does it constitute any recommendation, offer or invitation, express or implied, for any individual or entity to purchase any securities of Qingdao Haier. Any forward-looking statement contained in this press release, which may involves the company’s development strategy, finance, business performance and operation plan, is based on certain hypothesis and is subject to certain risks and uncertainties, many of which are beyond the company's control and are difficult to predict. Therefore, actual outcomes and results may be materially different from or even opposite to what is expressed or forecasted in such forward-looking statement. Such forward-looking statement does not constitute any commitment or binding obligation of Haier Group and Qingdao Haier, including any obligation to update any statement contained in this press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
FOR HAIER - 20:20 MSL, Communications Advisors to Haier in India
FOR GE APPLIANCES
Kim Freeman, 502.452.7819
Jennifer Erikson, 646.682.5648
+86 10 5960 8600
+1 502 452 7819
+1 646 682 5648