The Wall Street Journal 13 August 2013
Whirlpool Corp. has agreed to buy a majority stake in Chinese home-appliances maker Hefei Rongshida Sanyo Electric Co., giving Whirlpool a set of appliance brands that span the Chinese market where it has struggled to grow.
The purchase of a 51% stake in Hefei Sanyo for $552 million in cash (3.4 billion Chinese yuan) represents a significant expansion of Whirlpool’s Asia business, the company’s smallest geographic market with $847 million of sales last year, or just 4.7% of Whirlpool’s total sales.
Hefei Sanyo reported revenue of $636 million last year and had a net profit of $48 million, according to Whirlpool. The company is a distant third in China’s appliance market behind Haier Electronics Group 1169.HK +0.81% and Midea Group.