Disclosure of inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014

HAIER SMART HOME CO., LTD.: ACQUISITION OF CARRIER COMMERCIAL REFRIGERATION BUSINESS

Qingdao / Shanghai / Frankfurt / Hongkong, 13 December 2023 - Haier Smart Home Co., Ltd. (the “Company” or “Haier Smart Home”) intends to acquire, through a wholly-owned subsidiary (the “Purchaser”), the commercial refrigeration business (the “Target Business”) of Carrier Global Corporation, a company listed on the New York Stock Exchange of the United States of America (“Carrier Group” or the “Vendor”) at a cash consideration of approximately US$640 million, with the final consideration amount subject to adjustments at Completion.

The Purchaser will acquire 100% of the equity interest and relevant assets of Carrier Refrigeration Benelux B.V., a company incorporated in the Netherlands (the “Target Company”) (the “Acquisition” or the “Transaction”). The Vendor intends to restructure the Target Business into the Target Company.

With the Transaction, the Company intends to expand its business from “home refrigeration” to commercial refrigeration applications including food retail and cold storage, creating additional growth levers for the Company. The cold storage segment within the commercial refrigeration market in Europe, Asia Pacific and North America is expected to grow at a compound annual growth rate (CAGR) of approximately 13% between 2023 and 2028. The key growth drive is new cold storage capacity, which is attributable to the increase in consumption of fresh and frozen food products and the growing popularity of online food retail.

Beyond this, environmental sustainability initiatives across the globe are pushing the use of alternative refrigerants in the commercial refrigeration industry and a number of countries has vowed to reduce the production and use of hydrofluorocarbons (“HFCs”). Notably, the Target Business owns a carbon dioxide (“CO₂”) refrigeration technology based on natural refrigerants, which is in line with the shift towards alternative refrigerant use and the increasing demand for sustainable development worldwide.

IR Contact:
Haier Smart Home Hong Kong
T: +852 2169 0000
Email: [email protected]