News Arcelik Seals $300 Million Deal for Hitachi Electronics Business

[Test7]

Turkey’s leading household appliances maker Arcelik AS signed a deal to buy 60% of Hitachi Global Life Solutions Inc.’s for $300 million to deliver on its strategy to expand in emerging markets.

Arcelik and Hitachi GLS will form a new company that Arcelik will control to run operations in the home appliances market, excluding Japan, the Turkish company said in a filing to the stock exchange on Wednesday. The total transaction value is calculated on a cash-free and debt-free basis for the business, with the deal expected to be closed by April 1. Arcelik’s shares rose as much as 1% at the start of trading in Istanbul but were down 0.4% at 31.20 liras as of 10:04 a.m. Bloomberg reported on Friday that Arcelik was in talks to buy Hitachi’s oversees home appliance business.

The transaction includes two subsidiaries of Hitachi GLS with manufacturing facilities in Thailand and China, and 10 sales companies in the region that mainly sell refrigerators, washing machines, vacuum cleaners, rice cooker, water pumps and air conditioners. The annual production capacity of Thai and Chinese manufacturing firms is 3 million units of refrigerators and washing machines in total, according to the filing.

The consolidated net revenue of the acquired business, excluding Japan, was around $1 billion. Its earnings before interest, taxes, depreciation and amortization, or Ebitda, was about $70 million for the fiscal year ending on March 31. After the transfer, the product range is expected to be expanded with dryers, dishwashers, ovens and other small household appliances.

Growth Push

Arcelik sells products under 12 brands including Beko, Flavel, Grundig and Altus, according to its website. It’s expanded through acquisitions over the years, purchasing companies including South Africa’s Defy Appliances Pty Ltd. and Pakistan’s Dawlance Group.

The Turkish company has singled out the Asia Pacific region as a key growth market and last year agreed to buy control of the company that operates the Singer brand in Bangladesh.

“Asia Pacific will be the accelerator of the growth in our sector in the next 10 years with its increasing medium-class population, household revenues and improving retail channels and life style,” Arcelik’s chief executive officer, Hakan Bulgurlu, said in an emailed statement.

Arcelik Seals $300 Million Deal for Hitachi Electronics Business

Arcelik Seals $300 Million Deal for Hitachi Electronics Business

www.bloombergquint.com

 

[what]

Arcelik has been expanding its footprint in Asia steadily. Biggest white good brands in Pakistan and Bangladesh are Arcelik owned.

 

[Anmdt]

Arcelik has been expanding its footprint in Asia steadily. Biggest white good brands in Pakistan and Bangladesh are Arcelik owned.

I always assumed Beko as export brand, arcelik as in-country brand. Will they operate as Beko or Arçelik in Asia? (TBH i have seen beko products, not widely but sufficiently enough in asia)

 

[Saithan]

I always assumed Beko as export brand, arcelik as in-country brand. Will they operate as Beko or Arçelik in Asia? (TBH i have seen beko products, not widely but sufficiently enough in asia)

We sometimes see Beko in Denmark too, but comparing specs of similar products it’s slightly leas attractive.

 

[Timur]

We sometimes see Beko in Denmark too, but comparing specs of similar products it’s slightly leas attractive.

in germany you can find beko like everywhere.. on media markt, saturn, expert or even in edeka all sell beko

in my opinion they are ok not the high class but they have their share

 

[Combat-Master]

Beko has a large share of the market here in the UK. It's regarded as Mid-Tier brand.

 

[KKF 2.0]

Beko has a large share of the market here in the UK. It's regarded as Mid-Tier brand.

Same goes for Germany. Despite being quite affordable price-wise, Beko is widely considered and famous for its longevity and durability.

One German friend of mine told me that Beko is reminding him of old German brand products pre-2000. Back then, German electronics were famous for high quality and low prices.

 

[KKF 2.0]

Btw, Grundig is also owned by Arçelik. Every German knows the brand Grundig.

 

[Timur]

Btw, Grundig is also owned by Arçelik. Every German knows the brand Grundig.

but they have no good reputation anymore because they left quality of grundig..

we had a gruding tv in the 80ties it was indestructable.. than in the end of 90ties or in the beginning millenium I saw it again in a tv show and old woman was using it and they sold it to make some money.. we did not throw this tv away because it broke or else we sold it because we wanted a new bigger and better technology..

if they would have the half quality of old grundig they would have played in higher classes.. today grundig is a cheap brand name for imported chinese stuff.. for excample 65 inch tv for 440 euroes and full android on it.. its ok for that price but not really good I rather buy a sony for 500 and only 55inch and without andoid rather than that (for excample you can see the led lights on the 4 corners of the tv and the image comparison to a sony or samsung is bad)

but as I said beko is ok I never heared something bad about them here..

 

[KKF 2.0]

but they have no good reputation anymore because they left quality of grundig..

we had a gruding tv in the 80ties it was indestructable.. than in the end of 90ties or in the beginning millenium I saw it again in a tv show and old woman was using it and they sold it to make some money.. we did not throw this tv away because it broke or else we sold it because we wanted a new bigger and better technology..

if they would have the half quality of old grundig they would have played in higher classes.. today grundig is a cheap brand name for imported chinese stuff.. for excample 65 inch tv for 440 euroes and full android on it.. its ok for that price but not really good I rather buy a sony for 500 and only 55inch and without andoid rather than that (for excample you can see the led lights on the 4 corners of the tv and the image comparison to a sony or samsung is bad)

but as I said beko is ok I never heared something bad about them here..

I respectfully disagree. I have many Grundig products in my home and ever piece of equipment works perfectly fine.

What you're describing is historically true, though. Grundig went bankrupt in the 90s due to bad quality and mismanagement and Arçelik bought the brand in the year 2004/2005.

Since then, the company is performing very well and Grundig is everywhere available in Germany.

In fact , many Germans are associating 'quality' and 'traditional values' with Grundig even though it's 100% Turkish.

Read this article:

Grundig: Die Wiederauferstandene - brand eins online

Grundig war eine Wirtschaftswunderfirma, dann pleite, heute ist die Marke wieder allgegenwärtig. Die Geschichte zeigt, dass nicht nur Katzen mehrere Leben haben.

www.brandeins.de

 

[Sinan]

Good development;

Sometimes you don't know it but you buy Arçelik (applies for others too) but it's entire parts are something else.

For example, there some cooling systems named VRF. This system is basically works like a split klima however instead of 1 indoor unit, you can connect multiple (like 40) indoor units. Indoor units of Arçelik are all LG products, they just change the label and that's it. So, if you can buy those branch of the LG it's a win for Arçelik.

 

[CAN_TR]

Just moved out and got my own apartment few months ago everything Beko.

German products like Siemens, Bosch or Miele are f*cking expensive, especially Miele lost it totally. And some of Siemens/Bosch products are Made in China.

Worth to mention most Panasonic TV's also are basically Vestel made.