Appliance giant Haier Smart Home has acquired Electrolux South Africa Proprietary, a subsidiary of the Electrolux Group, which brings water heater brand Kwikot under its ownership.

The deal, valued at ZAR 2.45billion, marks a “significant” expansion for Haier in the Middle East and Africa region and will allow both brands to embrace opportunities.

Kwikot reportedly has South Africa’s largest water heater factory, plus an after-sales network, supported by a local management team.

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Its sales channels span national retail chains and independent stores, providing Haier with market access.

The Kwikot acquisition opens opportunities for Haier to introduce its portfolio of home appliances, including refrigerators and washing machines to South African consumers.

Kwikot reported net sales of ZAR 19billion (approximately RMB 753million) and positive EBITDA margin in 2023.

While Haier reported revenue of RMB 261.43billon, year-on-year growth of 7.22%, and net profit of RMB 16.6billion in 2023.

Commenting on the acquisition, general manager of Haier Water Solutions and vice president of Haier Smart Home Jian Yong said: “This acquisition is more than a business transaction; it’s a commitment to legacy, culture and long-term success,

“Kwikot’s century-long heritage and market leadership reflect the trust and excellence of the team.

“By combining Haier’s expertise in smart, sustainable solutions with Kwikot’s extensive local network, we aim to deliver transformational growth and innovation for South African households and beyond.”

General manager of Kwikot Murray Crow remarked: “Kwikot’s century long legacy of trust and innovation finds a natural partner in Haier’s commitment to sustainability and customer-centric innovation.

“Together, we are poised to redefine possibilities and create a brighter future for everyday life.”