Electrolux today announced it has entered into an agreement to acquire one of the largest manufacturers of professional dishwashers in China.
The Sweden-based foodservice equipment maker confirmed it was taking over Shanghai Veetsan Commercial Machinery Co. as part of its strategy to further accelerate growth in the professional segment.
Established in 2003, with steady growth over the past 10 years, Veetsan has annual sales of more than £9m. The company distributes its products across China and employs around 200 staff.
“By acquiring Veetsan we address growing demand in the region for solutions that can guarantee qualitative and hygienic results in line with international standards,” said Alberto Zanata, head of Electrolux Professional Products.
“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.”
Electrolux intends to use the acquisition to strengthen the sales of its commercial products in China as well as the Asia Pacific region. It regards the region as a potential significant growth area for the company in the next few years.
Closing is expected to take place during the first half of 2015 and is subject to authority approvals.