KKR & Co. L.P.
Qingdao Haier, KKR Form Strategic Partnership
Will Fuel Global Growth of China's Leading Home Appliance
HONG KONG & BEIJING--(BUSINESS WIRE)--
Global leading home appliance manufacturer Qingdao Haier Co., Ltd
("Qingdao Haier") (SSE stock code: 600690) and KKR, a leading global
investment firm with US$83.5 billion in assets under management,
announced the signing of a definitive agreement under which KKR will
acquire a 10% stake in Qingdao Haier, establishing a long-term strategic
partnership to collaborate on multiple areas.
Qingdao Haier is a global market leader in home appliances. Through its
forward-looking strategic vision, Qingdao Haier implemented an
innovative win-win management model that aligns employee performance
goals with customer's needs. With its focus on product innovation,
building a fully integrated online/offline platform and creating a
highly efficient "made to order" distribution channel, Qingdao Haier has
achieved high-quality sustainable growth while building a
widely-respected global brand. According to the latest figures from
China Market Monitor, Qingdao Haier has consistently maintained the
market leadership positions in major home appliance categories such as
refrigerators, washers, air-conditioners and water heaters.
Commenting on their partnership with KKR, Qingdao Haier Chairman Mr
Liang Haishan said, "By the end of 2012, the Company entered the crucial
'online' strategic phase of its long-term growth plan. We welcome the
world-class investment firm KKR to become our long-term strategic
partner which will help us effectively execute our growth strategies.
KKR's investment is a strong endorsement of our past achievements and
future potential. We believe KKR's global resources, operational
expertise and experienced local team will help Qingdao Haier to further
strength its market leadership position on a global basis."
Qingdao Haier Vice Chairwoman Ms Tan Lixia added, "KKR's ‘industrialist'
investment approach, focusing on long-term value creation, is the
perfect match to Haier's corporate culture. We believe KKR's strong
capital market expertise and deep international M&A experience will help
Haier to further grow its global platform and create value to all
Established in 1976, KKR pioneered the private equity industry and is a
leading global investment firm. In its 37-year history, KKR has
completed investments with over US$470 billion in total enterprise value
across 25 industries. KKR seeks to combine its global resources and
network with local expertise to assist its investment companies by
bringing value-add beyond capital. KKR's China efforts and team
highlight this approach, as they have invested through different
economic cycles and in a number of market leading companies in China.
"Qingdao Haier is one of the most respected Chinese companies with a
market leading position, an outstanding historical track record and an
outstanding management team. We are delighted to have the opportunity to
partner with such an excellent company," said David Liu, Member of KKR
and CEO of KKR Greater China.
"We look forward to fully utilizing KKR's global resources and local
expertise to assist Qingdao Haier in its next phase of growth by
capitalizing on the opportunities created by China's continued
urbanization and increasing consumer income trend, while also
accelerating its international expansion" added Mr. Liu.
The transaction is subject to customary regulatory and shareholder
approvals. For more details on this transaction, please refer to Qingdao
Haier's share placement plan.
ABOUT QINGDAO HAIER CO., LTD.
Founded in 1989, Qingdao Haier transformed from an insolvent
collectively-owned factory on the brink of bankruptcy into the No.1
global home appliance brand. On 19th November 1993, Qingdao
Haier was listed in Shanghai Stock exchange (SH: 600690). As of 30th
June 2013, Qingdao Haier has 2,695,909,540 shares outstanding, $8.85bn
total assets and $2.01bn shareholder's equity. In 2012, achieved
$13.05bn sales and $534 m net income. Qingdao Haier's strategy has
always centered on using innovative solutions to satisfy consumer demand
and achieve sustainable long term growth. The Company continues maintain
strong competitive advantage in the fast moving environment through
brand building, establishing effective sales channels, research &
developments and continuous operational improvements.
Founded in 1976 and led by Henry
Kravis and George
Roberts, KKR is a leading global investment firm with $83.5 billion
in assets under management as of June 30, 2013. With offices around the
world, including Beijing, KKR manages assets through a variety of
investment funds and accounts covering multiple asset classes. KKR seeks
to create value by bringing operational expertise to its portfolio
companies and through active oversight and monitoring of its
investments. KKR complements its investment expertise and strengthens
interactions with fund investors through its client relationships and
capital markets platform. KKR & Co. L.P. is publicly traded on the New
York Stock Exchange (NYSE: KKR) and "KKR", as used in this release,
includes its subsidiaries, their managed investment funds and accounts,
and/or their affiliated investment vehicles, as appropriate. For
additional information, please visit KKR's website at www.kkr.com
Key Media Contacts:
Kwai Seng Chan -- Hill+Knowlton
T: +852 2894 6314
Feng -- New Alliance Consulting International
T: +8610 6580 9510
R. Okun -- KKR (Asia)
T: +65 6922 5800
Huller -- KKR (New York)
T: +1 212 230 9722
Source: Kohlberg Kravis Roberts & Co. L.P.
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