© rawpixelimages dreamstime.com Electronics Production | March 30, 2016
Toshiba to sell home appliance business to Midea
Japanese Toshiba has signed a definitive agreement with Chinese Midea Group to transfer its home appliances business to Midea and to strengthen their strategic partnership.
By leveraging each other’s complementary capabilities and resources, the two enterprises will jointly explore growth opportunities. One of these initiatives is the DA under which Midea will acquire an 80.1% stake – for JPY 53.7 billion or USD 473 million – in Toshiba Lifestyle Products & Services Corporation (TLSC), which is the home appliances arm of Toshiba. The business will continue to develop, manufacture and market white goods, such as refrigerators, washing machines, vacuum cleaners and other small domestic appliances under the Toshiba brand name and the current company name. All employees of TLSC group engaged in the business will continue to work with TLSC group. The Chinese company will be licensed to use the Toshiba brand worldwide in relation to the business for 40 years. Additionally, Midea will receive more than 5'000 IP assets and a license to use other home appliance related intellectual properties retained by Toshiba. “We are glad to witness the fruition of our strategic partnership with Midea, crystallized by this transaction,” said Masashi Muromachi, Representative Executive Officer, President and CEO of Toshiba. “The home appliances business has long been an important part of our company, culture and brand image. In the process of identifying a trusted partner, we carefully looked at track records, capabilities, resources and commitment to the Business. Midea and Toshiba have more than 20 years’ successful cooperation in various areas and have built a good mutual understanding. We are impressed by Midea’s focus on globalization, strong product development capabilities, extensive global distribution network and commitment to high quality. I am confident that Midea’s further investment in R&D, marketing and branding will bring about a brighter future for the home appliances business,” Muromachi continued. Mr. Fang Hongbo, Chairman and President of Midea, commented: “With a strong global home appliance and HVAC business, the addition of Toshiba Home Appliance, its iconic brand, talented team and leading technologies, will significantly strengthen our competitiveness in Japan, Southeast Asia and the global market.”