Midea Holding Co. Ltd announced its acquisition of majority share in Carrier’s Latin America air-conditioning business. Through its Netherlands subsidiary, Midea acquires 51% of the equity in Carrier Latin America Holding Company while the rest 49% equity will be owned by Carrier. Total transaction price is around US$220 million.
Based on the joint venture, the two companies shall collaborate to further expand and develop the air-conditioning business in related regions. Carrier Latin America Holding Company currently holds Carrier’s air-conditioning business in Brazil, Argentina, and Chile.
The company, with a turnover of approximate US$700 million and profit of US$35 million according to 2010 figures, integrates Carrier’s interests in six companies within the region including Springer Carrier Ltd. (Brazil) Climazon Industrial Ltd.(Brazil), Arco S.A.(Agentina), Carrier S.A.(Agentina), and Carrier Fueguina S.A. (Argentina) and Carrier S.A. (Chile).
Latin America is one of the most rapid growth markets in the world. With a large population base, increasing disposable incomes and still low penetration of home appliances, the market is rather promising for future growth.
“Acquisition of Carrier’s Latin America Air-conditioning business is a further cooperation between the two companies,” said CEO of Midea Holding Co. Ltd., Mr. Fang Hongbo. Last year, Midea also formed a successful joint venture with Carrier on Miraco- Carrier’s Egyptian subsidiary. According to Hongbo, further expansion of the company’s collaboration with Carrier to Latin America is in alignment with Midea’s globalization strategy. Through the joint venture, Midea is expected to strengthen localization during globalization, to enhance local manufacturing support and to increase Midea brand awareness, said Hongbo.
