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HERITAGE B announces the successful divestment of Teka Group to Midea Madrid

 

June 7th, 2024.

 

After the conclusion of a competitive sales process, HERITAGE B has reached an agreement to divest Teka Group to Midea Group. The transaction will enable Teka to enhance its competitive position, whilst safeguarding the legacy of a brand with over 100 years of history. The deal is subject to the required approvals by relevant regulators. The closing of the transaction is expected in the coming months.

 

Teka Group is specialized in the design and manufacture of household appliances and sinks. With presence in over 120 countries, a team of nearly 3,000 professionals and 10 factories in Europe, Asia, and America, Teka produces over 3 million products each year.

 

This transaction, which will enable Teka to continue driving its growth and consolidation to compete globally, includes all operations related to appliances and sinks and the group's three brands: Teka, the leading brand in comprehensive kitchen solutions, celebrating its 100th anniversary in 2024; Küppersbusch, the high-end household appliance brand founded in 1875 in the Ruhr region (Germany); and Intra, the Scandinavian-origin timeless design brand specializing in home solutions.

 

Founded in 1968, Midea is a listed technology group with more than 190,000 employees worldwide. Headquartered in Foshan, Guangdong province (China), the Asian group closed 2023 with a turnover of 48 billion euros. Midea's business activities include household appliances, air conditioning products, services and components for industry, robotics and automation.

 

Midea Group will increase Teka Group’s capabilities in different strategic and operational areas, enhancing the company’s competitiveness in an increasingly complex and dynamic market. “We are very satisfied with the agreement reached. Having the opportunity of being part of Midea Group will ensure a promising future for the company and its brands. It will allow the Group to improve its capacity for innovation, manufacturing, and synergetic international expansion. Most of all, the main strategic value purpose of Midea Group, “Humanizing Technology”, is aligned with Teka’s belief related to technology development towards the customer and environmental needs.”, explained Mauro Correia, CEO of Teka Group.

 

Teka Group closed 2023 with c.€600m of gross sales and an adjusted EBITDA margin of 7%, a particularly positive and resilient profit performance despite post-Covid market adjustments, and supply chain issues amongst others. This figure demonstrates the company’s strength and the solid relation with all stakeholders around the world: customers and clients, distributors, suppliers and finance partners.

 

HSBC is acting as exclusive financial advisor and Ashurst is acting as legal advisor to Heritage B.

 

About Teka Group

Teka Group is a multinational group founded in 1924 in Germany, currently present in more than 100 countries, specializing in the design and manufacture of household appliances and stainless-steel sinks. Among its kitchen products are ovens, cooktops, hoods and sinks. The group maintains a strong commitment to design and continuous innovation, which has allowed it to obtain 34 awards in this field in the last two years. Its main brands are Teka, Küppersbusch, and Intra.

 

About Midea Group

Founded in 1968, Midea Group is a listed technology group with more than 190,000 employees worldwide headquartered in Foshan (China). With a turnover of 48 billion euros in 2023, the group's commercial activities include household appliances, air conditioning products, services and components for industry, robotics and automation.

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