CICC Assists Whirlpool Corp. to Transfer Controlling Interest in Whirlpool (China)

2021-05-11Corporate News

Whirlpool Corporation (NYSE: WHR, “Whirlpool Corp.”) completed its transfer of 31.1% stake in Whirlpool (China) Co., Ltd. (600983.SH, “Whirlpool (China)”) to Guangdong Galanz Household Appliances Co., Ltd. (“Galanz”) on May 7, 2021, after accepting the latter’s partial tender offer. As Sell-side Financial Advisor to Whirlpool Corp., CICC led the design of the transaction plan, advanced regulatory communications and coordinated execution to ensure the success of the deal, which again demonstrated our CICC’s cross-border service capabilities.

In this transaction, Whirlpool Corp. accepted the partial tender offer made by Galanz and transferred 31.1% of shares in Whirlpool (China) to the counterparty, while retaining 20% of shares; Galanz acquired cumulatively 51.1% of shares in Whirlpool (China) via partial offer and gained control of the company. By introducing Galanz, a local home appliances company with strong resources and synergy, as the controlling shareholder of Whirlpool Corp.’s Chinese arm, this deal has achieved an alliance between the two players, and will boost the future development of Whirlpool (China) and help Whirlpool Corp. to redeploy its presence and strategically upgrade in the Chinese market.

Whirlpool Corp.: Founded in 1911 and headquartered in Michigan, US, Whirlpool Corp. is one of the world’s largest manufacturers and distributors of white goods. By 2020, Whirlpool Corp. had a total of 57 production sites and R&D centers and 78,000 employees globally, with annual sales revenue of more than US$19bn. It has a great number of international home appliance brands such as Whirlpool, Maytag, KitchenAid, Indesit, Hotpoint and Brastemp, among others.

Whirlpool (China): Whirlpool (China) was formerly known as “Hefei Sanyo”. In 2014, Whirlpool Corp. acquired a 51% stake in Hefei Sanyo by transfer via agreement and subscription of private placement, after which Hefei Sanyo was renamed as Whirlpool (China). Whirlpool (China) operates in more than 60 countries and regions in the world and has product lines covering refrigerators, washing machines, dishwashers, dryers, kitchen appliances and household appliances, among others.

Galanz: Founded in 1978, Galanz, with a focus on the manufacturing of microwave ovens in the early days, has gradually entered markets of other home appliances such as air conditioners, refrigerators and rice cookers and is transforming into a comprehensive white goods group. Galanz supplies products and services to nearly 200 countries and regions in the world.

CICC, as Sell-side Financial Advisor in the this cross-border transaction, secured the efficient execution and smooth closuree of the transaction by virtue of our its international strategic vision and in-depth understanding of the Chinese market. This transaction involved many different types of stakeholders such as MNC,SOE and private enterprises, but we CICC managed to address various challenges by solid expertise and professional services, which was highly praised and recognized by the client. This transaction is another iconic cross-border deal of CICC, and a benchmark practice for CICC to facilitate MNC clients to enhance their presence in the Chinese market and realize strategic upgrading.