Hitachi Ltd said Tuesday it will sell its home appliance business to Japanese electronics retailer Nojima Corp, as part of its restructuring efforts, aiming to combine the two companies’ strengths to enhance product development.
Under the partnership between Hitachi and Nojima, Hitachi Global Life Solutions Inc will spin off its home appliance business into a new company that Nojima will acquire a 80.1 percent stake in for about 110 billion yen ($693 million) through a special purpose company. The remaining 19.9 percent stake will be retained by Hitachi GLS.
The move comes as Hitachi has been pursuing a strategy focusing on businesses that generate stable revenue, including railways and energy, while emphasizing the use of digital technologies.
By bringing a major brand under its umbrella, Nojima aims to expand its home appliance business planning by combining customer needs data gained from its store operations and Hitachi’s technological capabilities to enhance product development and after-sales services.
Nojima President Hiroshi Nojima said at a press conference in Tokyo that the company “will retain employees” of Hitachi GLS after the acquisition, with the Hitachi brand continuing to be used.
The new company will also take over Hitachi’s overseas home appliance business.
Hitachi GLS, whose main products are refrigerators and washing machines, has about 5,100 employees and posted sales of 367.6 billion yen in the year ended March last year.
Nojima, meanwhile, has been expanding its appliance business in which it owns brands, not limited to retail operations, including its acquisition of PC maker VAIO Corp.
© KYODO
