Electrolux announced on February 5 it has entered into an agreement to acquire Shanghai Veetsan Commercial Machinery Co. Ltd.,, one of the largest manufacturers of professional dishwashers in China, as part of its strategy to further accelerate growth in the professional segment.
Electrolux business area Professional Products is a world leader in the production and distribution of professional food service and laundry solutions. The acquisition further strengthens Professional Products position in China as well as the Asia Pacific region, where the company sees potential for significant growth in the next few years.
“By acquiring Veetsan we address growing demand in the region for solutions that can guarantee qualitative and hygienic results in line with international standards. Professional dishwashing represents one of the most promising product categories as its penetration rate in China is still considerably lower than other categories, such as cooking or refrigerated storage,” says Alberto Zanata, Head of Electrolux Professional Products.
Established in 2003, with steady growth over the past 10 years, Veetsan has annual sales of approximately RMB 90 million (SEK 115 million). The company distributes its products across China and has about 200 employees.
Closing is expected to take place during the first half of 2015 and is subject to authority approvals.