Philips announced the official "hand in hand" Pentium.
Dutch electronics giant Philips said Monday it had agreed to acquire Povos, a leading Chinese kitchen appliance maker, in a bid to expand sales in the world’s second largest economy. The deal is expected to be completed in the fourth quarter this year.Hong Shibin, a marketing vice president with the China Household Electrical Appliances Association, said Philips hopes to use the acquisition to expand its product portfolio in China to include a wider variety of small electrical appliances.
Povos President Zhang Yongtao emphasized that the company’s brand and team will remain unchanged. The company will merely have a new major stockholder, Zhang said. He added that he wasn’t sure of the exact acquisition price.
Hong expressed doubts about the strategy behind the deal. Focusing on kitchen appliance manufacturing is not the best way to develop the company, he said. Povos has to face stiff competition from Midea, Supor and other domestic kitchen appliance brands.
Royal Philips Electronics announced on Monday that it has agreed to acquire Pentium Electric (Shanghai) Co., Ltd. to expand its sales in the world’s second largest economy. This company is a well-known company in China that produces small kitchen appliances. The acquisition is expected to be completed in the fourth quarter of this year.
In this regard, Hong Shibin, vice chairman of the Marketing Committee of China Household Electrical Appliances Business Association, believes that Philips wants to take advantage of Pentium Electrical Appliances to realize its dual-fist strategy of fine small household appliances and small household appliances.
Zhang Yongtao, president of Pentium Electric Appliances, said that after the acquisition, the existing team and brand of Pentium will not change, but only a major shareholder will be replaced. Zhang Yongtao said that he did not know the specific acquisition amount.
Hong Shibin believes that at present, Pentium Electric’s production by small household appliances alone is not the best way to continue to develop, and it has to compete with Midea, Supor and other brands in an all-round way.