haier group enters into mou for global strategic partnership with general electric - home appliances suppliers

Qingdao, China, January.
15, 2016/PRNewswire /--Haier Group ("Haier")
General Electric (NYSE: GE; "GE")
The memorandum of understanding (MOU) was announced today ("MoU")
Global cooperation to jointly advance growth projects in key areas where both companies can enhance their business competencies such as the industrial internet, healthcare and advanced manufacturing.
This framework agreement on strategic cooperation will complement two highly complementary worlds.
Enterprise, and established a cross-
China-US border investment and cooperation.
In addition, Qingdao Haier Co. , Ltd. , Ltd. (SHA: 600690;
Qingdao Haier]
The Shanghai Stock Exchange, which owns 41% of Haier's shares, will acquire GE's electrical business (GE Electric Appliance].
As part of Haier's global business expansion, Qingdao Haier acquired all overseas businesses of Haier Group in June 2015.
The strong combination of Qingdao Haier and GE electric appliances will further enhance the global competitive power of Qingdao Haier.
GE Electric has more than 100 years of brand heritage, loyal mid-rangeto high-
End customer base, experienced and accomplished management team, unique corporate culture, strong white merchandise portfolio, extensive self
It has a logistics and distribution network in the North American market and has established a quality control system. Mr.
Zhang Ruimin, chairman and CEO of Haier Group, commented: "This strategic alliance provides a new starting point for Haier and GE, I believe this partnership will bring greater value to the stakeholders of the two companies.
In addition, we share a common goal and we want to achieve it together: to enhance the value of Haier and GE brands and develop our employees by encouraging independent innovation and cooperation. "Mr.
Jeff Immelt, CEO of GE, commented: "We are pleased to sell our electrical business to Haier and launch this new partnership.
Haier has a clear focus on development in the United States. S.
Build their manufacturing business here and invest further in it.
Innovation, new product introduction and brand management are fundamental to the overall strategy of the enterprise.
GE Electric provides Haier with first-class products. of-the-
A talented team.
In addition, we have seen the opportunity to work together to build a GE brand in China.
"GE Appliances, based in the city of Wisconsin, Kentucky, is the leading home appliance company in North America.
The company has nine manufacturing plants in five U. S. states. S.
Created the World
Provide first-class logistics and distribution capabilities and strong customer relationships in retail and contract channels.
In 2014, the price of GE was about $5.
Revenue was $9 billion.
4 billion of EBITDA.
The company employs about 12,000 employees worldwide, 96% of whom are in the United States.
The acquisition of GE Electric is an important investment to expand Haier's business in the United States. S.
In the Western Hemisphere.
GE's headquarters will still be in the city of Wisconsin, Kentucky.
The business will continue to operate independently with the participation of GE's current senior management team and under the guidance of the local board of directors, which will guide the strategy and operation of the business.
Haier is committed to continuing growth in the US market. S. business.
This transaction will create instant and long term-
Not only for communities operated by both companies, but also for long-term value to employees, customers, business partners and shareholders.
Haier and GE Appliances will support and reach consumers and suppliers in their respective complementary regions.
In particular, the deal will provide GE appliances with channels to meet their high demand
High quality products in the Chinese market and positioning for the company's further international development.
In addition, by creating a bigger, more global company, this transaction will provide more opportunities for all employees. Mr.
Liang Haishan, chairman of Qingdao Haier Co. , Ltd. , Ltd.
Comments: "Qingdao Haier and GE electric appliances are the leading home appliance enterprises in the eastern and western hemisphere.
The alliance between the two sides will bring great mutual benefit.
Qingdao Haier and GE electric appliances are complementary enterprises with strong advantages in brand, market, product innovation, supply chain and quality management.
This will further enhance the brands of Haier and GE.
Height of GE Appliances
The experienced and successful management team will continue to guide the direction of the business and will participate in the board of directors.
In addition, Qingdao Haier will provide support and employee development opportunities within our global operations platform.
We benefit from KKR's experience and a wide range of networks that bring real added value to this acquisition.
"Part of the deal details acquisition, GE will get a $5 cash consideration from Qingdao Haier. 4 billion.
The structure of the transaction is mainly the purchase of assets.
After deducting certain expected earnings, the transaction value represents 8.
According to the 2 x multiple of the 2015 EBITDA estimated by GE applian C, it is up nearly 50% from the level two years ago.
The acquisition includes 48 GE appliances.
Mabe, a Mexican appliance company with a 4% stake, runs a joint venture and has established a 28-year purchasing relationship with GE Electric.
As part of the transaction, under the ownership of Qingdao Haier, GE Electric will continue to sell the current product portfolio of GE brand within 40 years (
Including 2 10-Annual extension).
Qingdao Haier expects the transaction to grow on EPS from the first yearclosing.
Commitment to the end of the transaction is subject to customary filing and habitual reversal by Chinese regulators
Trust permits from relevant countries.
In addition, the transaction must be approved by two people
Qingdao Haier shareholders attended the vote of 30 people.
Haier Group and KKR have 50 together.
Qingdao Haier's 8% outstanding shares fully support this transaction.
"GE's home appliance business has significant strategic value for Haier.
The business integration with Haier, coupled with the long-lasting and comprehensive partnership between Haier and GE, has laid a solid foundation for Haier's long-term development. term growth.
We fully support Haier's management team and are happy to contribute to the company's continued success.
The completion of the deal and the cooperation between Haier and GE will bring Haier to the next stage of development, "said David Liu, director of Qingdao Haier.
Head of Asian private equity investment, KKR China CEO.
These companies expect the deal to end in the medium term2016.
Bank of America Merrill Lynch and PwC financial advisers serve as financial advisers to Qingdao Haier.
PwC finance managed the project for the deal.
White & Case is an overseas legal adviser to Qingdao Haier.
Bank of America Merrill Lynch, China Development Bank and China Construction Bank have pledged to finance the deal.
China International Finance Co. , Ltd. and Jindu Law firm are independent financial advisers and domestic legal advisers of Qingdao Haier respectively.
Haier Group is the world's leading home appliance supplier with a global revenue of $32.
Profits of $6 billion.
2014 40 billion.
Its mission is to create innovative home appliances that are expected to be fast
The changing needs of consumers around the world.
In the past six years, Haier has been rated as a global home appliance brand by Euromonitor International, the world leader in consumer market strategy research, in 2012, boston Consulting Group has named Haier one of the world's top ten most innovative companies, and is also the most innovative company in consumer and retail.
Its global headquarters are located in the Chinese city of Qingdao, and its regional headquarters in Paris and New York provide services to customers in Europe and the Americas.
Haier has 5 R & D centers, 66 trading companies and 21 industrial parks around the world.
Qingdao Haier Co. , Ltd.
A subsidiary of Haier Group, listed on the Shanghai Stock Exchange (SHA: 600690)
Focus on promoting smart home technology innovation. About GEGE (NYSE: GE)
World Digital Industry Corporation, transforming industry with software
Define machines and solutions to connect, respond, and predict.
GE is organized around the global knowledge exchange "GE Store" through which each enterprise can share and access the same technology, market, structure and intelligence.
Every invention has further promoted the innovation and application of our industrial sector.
With people, services, technology and scale, GE delivers better results to its customers by using industry languages. www. ge.
Com. GE appliances about GE appliances are leading the way in building innovative, energy-efficient products
Efficient electrical appliances to improve people's lives.
The products of GE Appliances include refrigerators, freezers, cooking products, dishwashers, washing machines, dryers, air conditioners, water filtration systems and water heaters.
General Electric (NYSE: GE)
Work on important things and build a better world.
For more information about GE Appliances, please visit www. ge. com/appliances.
Disclaimer This press release, as Haier Group's introduction to this transaction, does not constitute any supplement, modification or adjustment to Qingdao Haier's announcement on this transaction;
For any information about Qingdao Haier and this transaction, please refer to the announcement issued by Qingdao Haier on the Shanghai Stock Exchange.
This press release does not constitute any statement, guarantee, business performance commitment or guarantee of Haier Group or Qingdao Haier's assets subject to this transaction, nor does it constitute any recommendation, offer, express or implied, or invite any individual or entity to purchase any securities of Qingdao Haier. Any forward-
The forward-looking statement contained in this press release, which may involve the company's development strategy, finance, operating performance and operation plan, is based on certain assumptions and is affected by certain risks and uncertainties, many of them are beyond the control of the company and it is difficult to predict.
Therefore, the actual results and results may differ significantly from the results expressed or predicted in this advance, or even the opposite
Statement. Such forward-
Look statement does not constitute any commitment or binding obligations of Haier Group and Qingdao Haier, including any obligation to update any of the statements contained in this press release.