Midea acquire 80.1% stake in Toshiba home appliances business

Toshiba Corporation and China-based Midea Group Co., Ltd. have signed a Definitive Agreement where Midea will acquire an 80.1% stake in Toshiba Lifestyle Products & Services Corporation., the home appliances arm of Toshiba. The transaction price for the 80.1% stake is approximately JPY53.7 billion (US$473 million) (subject to certain adjustments) at closing. The home Appliances products made by Toshiba includes refrigerators, washing machines, vacuum cleaners and other small domestic appliances. Midea is given the license to use the Toshiba brand worldwide in relation to the Business for 40 years. Additionally Midea will receive more than 5,000 intellectual property assets and a license to use other home appliance related intellectual properties retained by Toshiba. “We are glad to witness the fruition of our strategic partnership with Midea, crystallized by this transaction,” said Masashi Muromachi, Representative Executive Officer, President and CEO of Toshiba. “The home appliances business has long been an important part of our company, culture and brand image. In the process of identifying a trusted partner, we carefully looked at track records, capabilities, resources and commitment to the Business. Midea and Toshiba have more than 20 years’ successful cooperation in various areas and have built a good mutual understanding. We are impressed by Midea’s focus...