Royal Philips Electronics (Amsterdam) agreed to acquire appliance maker Povos Electric Appliance (Shanghai) Co., Ltd. Financial details were not disclosed and the transaction is expected to close in the fourth quarter of 2011. Povos’ products include rice cookers, induction cookers, electric pressure cookers, and kettles, all of this are widely used appliances in China.
Philips said the acquisition highlights the importance of the potential of growth markets. Earlier in 2011 Philips acquired Indian kitchen appliance company Preethi.
“With the acquisition of Povos, Philips is significantly expanding its product portfolio in China and building on its ability to set the pace of innovation in the global kitchen appliances market,” said Pieter Nota, CEO of Philips's Consumer Lifestyle sector. “Since the beginning of this year, our Domestic Appliances business has been headquartered in Shanghai. By combining the development, design and manufacturing capabilities of Povos with our strong brand and distribution network, we can accelerate our growth in the dynamic kitchen appliances markets in China and across Asia.”
Povos is headquartered in Shanghai and has about 1800 employees. When the acquisition closes, Povos will become part of the Shanghai-based Domestic Appliances business group within Philips Consumer Lifestyle.
“Povos has grown tremendously in the last number of years, giving us a substantial position in the kitchen appliance market in China,” said Povos Chairman Liu Jianguo. “Together with Philips, Povos can expand on that position, using the combined strength of the two organizations to benefit both our customers and employees.”
to Daily News