Nojima to buy Hitachi home appliance unit for $630 million

Hitachi has said that it will sell its home appliance business to Japanese electronics retailer Nojima. 

Hitachi Global Life Solutions Inc will spin off its home appliance business into a new company that Nojima will acquire a 80.1 percent stake in for about 100 billion yen (USD 630 million) through a special purpose company, according to a report by Nikkei newspaper.  

The remaining 19.9 percent stake will be retained by Hitachi GLS.

In addition, with respect to Arçelik Hitachi Home Appliances B.V., which was jointly established by Hitachi GLS and Arçelik A.S. and operates the Hitachi-brand home appliance business in overseas markets, Hitachi GLS and Arçelik have entered into a share purchase agreement concerning the 60% stake in AHHA held by Arçelik. The rights and obligations (contractual position) under this share purchase agreement will be succeeded by the new company through the company split.

“Through this series of share transfers, management resources for the home appliance business in Japan and overseas will be integrated under the new company. The new company will continue to provide customers with Hitachi-branded home appliances, from manufacturing through after-sales service,” Hitachi said. “Through the strategic partnership between the two companies, we will strengthen the customer-driven business model cultivated in the Japanese market and expand it globally, thereby ushering the Hitachi-branded home appliance business into a new stage of growth.”