Chinese home appliances and electronics maker Midea plans to invest USD223.3 million to acquire a 51% stake in the Latin American air-conditioning business of Carrier, an American home appliances provider.
After the acquisition, Carrier will maintain a 49% stake in the company; and Midea and Carrier will jointly operate and expand the air-conditioning business in Latin America.
Carrier's Latin American air-conditioning business reportedly covers three countries, including Brazil, Argentina and Chile. At present, the company has net assets of USD192 million; its revenue in 2010 was about USD621 million; and its net profit was USD34.8 million.
A representative from Midea said that the acquisition aims to accelerate Midea's globalization strategy and improve its worldwide distribution. It will help the company expand owned brands; train and reserve international talents; and accumulate overseas expansion experience.
The representative also said that in 2010, the scale of the Latin American family air-conditioning market reached about eight million units; and Brazil, as the largest market in the region, boasted four million units alone. Carrier has operated the air-conditioning business in Latin American for many years and it is in a leading place in the local family and business air-conditioning industry. It has established a localized and efficient operating platform as well as system operational capability in the marketplace.