Category Archives: Financial

Philips is to sell its domestic appliances business to Hillhouse Capital

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Philips is to sell its domestic appliances business to Hillhouse Capital with a 15 year licensing deal in the last of its re-structuring deals.

The domestic appliance business had sales of EUR2.2bn in 2020 in kitchen, coffee, garment care and home care devices as part of total sales of EUR19.2bn for Philips. The license agreement has annual payments that represent an estimated net present value of approximately EUR 700m, resulting in a total deal value of approximately EUR4.4bn. The deal is expected to be completed in the third quarter of 2021 subject to customary closing conditions. Philips and Domestic Appliances will enter into an exclusive brand license agreement to use the Philips brand and certain of Philips’ other domestic appliances brands for manufacturing, sales, and marketing globally for a period of 15 years, which is renewable subject to the terms of the brand license agreement. This will see the Domestic Appliances business presented as a discontinued operation in Philips’ financial statements from the first quarter of 2021, minimising the financial impact of losses from the Covid-19 pandemic. “I am pleased that in Hillhouse Capital we have found a new home for the Domestic Appliances business to further expand on its market leadership, strong brand and pipeline of new innovations,” said Frans van Houten, CEO of Royal Philips. The deal, which started in January 2020, continues the focus for Philips as a medical technology company, after its recent acquisition of medical data management companies, although it has kept the personal health business. “This transaction concludes our major divestments,” said van Houten. “Going forward, our focus is on extending our leadership in health technology and continuing our transformation into a solutions company supporting professional healthcare customers achieve the Quadruple Aim and consumers with their personal health.” This includes the EUR 3.2bn Personal Health businesses as part of the integrated health continuum approach through consumer-driven product and solutions innovation in areas such as oral healthcare, personal care, and mother & child care, says van Houten. “We look forward to joining forces with Philips to expand into new markets and capture more growth opportunities globally,” said Lei Zhang, Founder and CEO of Hillhouse Capital. “We are aligned with Philips’ mission to bring high quality products to support healthy and fulfilling lifestyles for consumers across the globe.” The domestic appliance business has 7000 staff and operates in 100 countries. The headquarters will remain in the Netherlands, says Zhang. “I am convinced that together with Hillhouse Capital’s deep e-commerce, supply chain and digital expertise, we will be in a great position to continue bringing meaningful innovations to the consumer’s homes,” said Henk de Jong, CEO of Philips Domestic Appliances. “Based on our market leading product portfolio, broad customer and consumer base and R&D capabilities, we are keen to keep supporting families and individuals to lead healthier and happier lives. We look forward to working with Hillhouse to capture additional growth opportunities.” Hillhouse is backed by US universities including Yale, Stanford and Princeton and has strong links in China with investments in Tencent and JD.com, but has also invested in an organic baby food and snack manufacturer called Little Freddie, a Californian craft beer maker and a pet food brand. https://www.philips.com

Webcast ahead of the Annual General Meeting with Electrolux Chairman

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A webcast ahead of the Annual General Meeting with Electrolux Chairman and CEO is now available on www.electroluxgroup.com.

As previously communicated, the Annual General Meeting on March 25, 2021 will due to the coronavirus pandemic be held without physical presence of shareholders. In addition to the information already published ahead of the Annual General Meeting, Electrolux Chairman of the Board Staffan Bohman and President and CEO Jonas Samuelson share their reflections on 2020 and the strategy forward in a webcast. The webcast is available here http://www.electroluxgroup.com.

Conair Corporation To Be Acquired By American Securities

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Conair Corporation, a global leader in premium kitchen electric appliances, non-electric kitchenware, personal care, grooming, health and beauty products, and American Securities LLC, a leading U.S. private equity firm, announced today that Conair has entered into a definitive agreement to be acquired by affiliates of American Securities.  Financial terms of the transaction were not disclosed.  Certain members of the Rizzuto family will retain a minority ownership in Conair.

Based in Stamford, CT, Conair’s iconic brands include Cuisinart®, Conair®, Babyliss®, Scunci® and Waring®.  Founded in 1959 by Leandro Rizzuto, the Company started as a small hair appliance company.  Today, Conair sells its products in more than 120 countries across six continents.  

“I am proud to continue the journey I started under Mr. Rizzuto more than 40 years ago that helped us grow our iconic brands into a world class, diversified global company proudly sharing our products in millions of consumers’ homes,” said Ron Diamond, Conair’s President.  “The partnership with American Securities will allow us to continue our evolution with a focus on new product development and an acceleration of our M&A activities while continuing to bring efficiencies to our operations.”  Following the consummation of the transaction, Mr. Diamond will become President and CEO of Conair. 

“We are excited to partner with Ron and the rest of the Conair management team as they continue to execute on a strategy to expand on the exceptional brand portfolio that consumers love all over the world,” commented Kevin Penn, a Managing Director of American Securities.  “The Company’s scale, best-in-class product offering, supply chain capabilities, and strong management team creates a sustainable competitive advantage and makes Conair a strong fit for our investment strategy,” added Helen Chiang, a Managing Director of American Securities. 

Paul, Weiss, Rifkind, Wharton and Garrison, LLP served as legal counsel to Conair and Weil, Gotshal & Manges LLP served as legal counsel to American Securities with respect to the transaction.  Sawaya Partners LLC and PJ Solomon acted as financial advisors to Conair with respect to the transaction. 

About Conair
Based in Stamford CT, with operations worldwide, Conair is a leading designer, manufacturer, and marketer of branded personal care and small kitchen appliances, cookware, hair brushes & accessories, cosmetic bags, and travel accessories.  For more information, visit www.conair.com.

About American Securities
Based in New York with an office in Shanghai, American Securities is a leading U.S. private equity firm that invests in market-leading North American companies with annual revenues generally ranging from $200 million to $2 billion and/or $50 million to $250 million of EBITDA. American Securities and its affiliates have approximately $23 billion under management. For more information, visit www.american-securities

Fagor becomes a partner of the Atletico Madrid women’s football team.

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Fagor domestic appliances  has signed a sponsorship agreement with Atlético de Madrid and its women’s team. The pioneer brand in Spain with more than 65 years of experience, thus becomes the new club sponsor for this season and the next three.

The presentation ceremony for this new commercial agreement took place at the Wanda Alcalá de Henares Sports Center. At the event were present, Lola Romero, director of the Feminine, the players Deyna and Ludmila, and Vicente Sánchez, general director of Fagor Electrical Appliance.

Lola Romero welcomed her new partners: “For our club, the union of this new sponsor with our first team represents the best synergy that can be found with an innovative brand such as Fagor.”

For his part, Vicente Sánchez, CEO of Fagor Electrical Appliances, said: “Fagor is a brand recognized in Spain and with a great heritage and on the other hand we support the great passion that we have in Spain for this sport. Thus, we see in Atlético de Madrid and its women’s division values ​​and a trajectory that connect very well with our brand and will help us to make it even more recognizable. We share this passion and enthusiasm at all levels ”.

The new Fagor white goods began to be marketed in Spain in the first quarter of 2020 after the agreement signed by the international group Amica, current owner of the Fagor Electrical Appliance brand

Haier’s 70 million Euro Refrigeration plant in Romania to start production in late Spring 2021

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Haier Europe announces that construction of the first Haier refrigeration production facility in the EU is proceeding according to schedule, with production expected to start in late Spring 2021.

This production facility will manufacture best-in-class refrigerators, both built-in and freestanding for Haier Europe’s 3 brands – Candy, Hoover and Haier – with a focus on connectivity and preservation.

This large investment project exceeds EUR 70 million. The factory will have 63,000 square meters floor space on a total land of 130.000 square meters, located in the Allianso Industrial Park at Aricestii Rahtivani, near Ploiesti, 70km away from Bucharest.

The new factory will employ nearly 800 people – at full capacity – for an expected production of 600,000 units after 2022. The factory design, which is based on modular approach, will allow an expansion up to 1 million units at full capacity.

“We are happy to have chosen Ploiesti for our first cooling production facility in the European Union. This project will make Romania a strategic hub for Haier Europe and will play a key role in its strategy to become one of the top 3 leaders in the industry by 2023. With its large production capacity, technology transfer and logistic features, we are confident this facility will be a first class project that effectively shows our ‘zero distance to consumers’ philosophy”, says Alessia Ianni, Cooling Technical Operation Director at Haier Europe and Managing Director at Haier Tech Romania.

The Romanian plant will be a world-class facility featuring premium production processes brought by Haier’s advanced R&D, manufacturing capabilities and know-how. Its strategic central location, technology and efficiency will enhance Haier’s ability to serve customers in the region. This key project represents a strategic pillar in the leadership’s consolidation path of the Company in the refrigeration segment worldwide and in the execution of Haier Europe’s vision to become the first choice for consumers for smart home.

Haier Tech factory in numbers:

70+ million euros investment
63,000 square meters Floor Space
130000 square meters of land
800 new jobs
Up to 1 million fridges/year produced

Glen Dimplex acquires a majority shareholding in Thermofilm

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Glen Dimplex Group is pleased to announce it has acquired a majority shareholding in Thermofilm Pty Ltd. Based in Dandenong South, Victoria, Thermofilm produce and distribute a premium range of “Heatstrip” outdoor radiant heating products – both electric and gas. Products within the Thermofilm range include the award winning HEATSTRIP heaters, BLISS heaters and CROSSRAY bbq’s

Groupe SEB has announced a new partnership agreement with Chefclub,

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Groupe SEB has announced a new partnership agreement with Chefclub, as well as the acquisition of a minority stake via its investment company, SEB Alliance.

Simplifying cooking and making it accessible to all: that’s what Chefclub, the start-up created in 2016 by three brothers, Thomas, Jonathan and Axel Lang, has set as its corporate mission. Chefclub has rapidly become a leading brand in the production and dissemination of cooking content. It has already sold 700,000 books and launched a series of innovative products for kids, which more than 150,000 families have enjoyed so far, all created in collaboration with its online community. Groupe SEB, always at the forefront of innovation, decided to partner with Chefclub, in its new round of financing, for its appeal of experiential content and direct access to online communities which represents the future of e-commerce.

100 million followers: direct access to a powerful global online community

Free dissemination of quality content has enabled the brand to attract a community of tens of millions of followers. A true Digital Native Vertical Brand (DNVB), Chefclub has built a relationship of trust with its users, who they can consult and involve in the development of their products. Each product is designed based on the tastes of and requests and comments from the online community, expressed at different stages of the creation process.

More than one billion views per month: unrivaled visibility

Unlike traditional DNVBs, however, Chefclub stands out thanks to one key strength. As viewers switch from television to social media, Chefclub promotes its brand and its products via inspirational and amusing video recipes viewed all over the world: in December 2020, more than 50 million Americans and close to 15 million French viewers watched Chefclub’s recipe videos.

And a strategic brand license: “Chefclub by Tefal”

This acquisition is also part of joint efforts which will be stepped up in H1 2021 with the launch of a range of products under the brand license “Chefclub by Tefal”, including skillets, saucepans, kitchen tools and small domestic appliances. Created in collaboration with the Chefclub community, this range combines Chefclub’s expertise in the development of creative recipes with Tefal’s sustainable design for simple products to make cooking easier. It will be launched shortly in France and internationally (Germany, Brazil, Italy, South Korea, Canada, Spain, the UK and Mexico), and will be sold via all offline and online channels as well as directly to customers (DtoC) on the Tefal and Chefclub websites.

The new brand “Chefclub by Tefal” benefits from unprecedented visibility on social networks and will broaden Groupe SEB’s reach, particularly with Millennials, who are discovering or rediscovering the joys of cooking thanks to the start-up’s content. By joining forces with Groupe SEB, world reference for small domestic appliances, Chefclub has access to recognized industrial expertise, the renown of the Tefal brand and a broader retail network which will enable its community to discover its products via the Group’s retail channels.