Toshiba and Midea Sign Memorandum of Understanding on Sale of Toshiba’s Home Appliance Business
Toshiba Corporation (TOKYO: 6502, “Toshiba”) and Midea Group Co., Ltd. (SZSE: 000333, “Midea”) today jointly announced that they have signed a Memorandum of Understanding on Toshiba’s sale to Midea of a majority interest in its home appliance business (the “Business”). Under the envisaged agreement and upon completion of the transaction, 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.
On December 21, 2015, Toshiba announced the “Toshiba Rebuilding Initiative”, which included the potential re-organization of the Business. Toshiba has subsequently carried out procedures to identify a trusted partner that would be committed to building on Toshiba’s achievements to further grow the Business.
Toshiba and Midea have built up a strong relationship over 20 years in a number of areas, including compressors, small domestic appliances and inverters. This proposed transaction will further cement and enhance the collaboration of two leading players with extensive expertise to create increased immediate and long term values for consumers, business partners, employees and shareholders.
Going forward, the parties will continue discussions in good faith, towards a definitive agreement that is expected to be finalized by the end of this month.
Midea was established in 1968 and has grown into a leading global manufacturer of consumer appliances and heating, ventilation and air-conditioning (HVAC) systems, with a uniquely broad product range that includes air-conditioners, refrigerators, laundry appliances, kitchen appliances and various small home appliances. Midea had total revenues of US$23 billion in 2014 and over 100,000 employees worldwide.
To find out more about Midea, please visit http://www.midea.com/global