Chinese whitegoods manufacturer, Haier Corporation, has taken a 20 per cent share in Fisher & Paykel and in doing so each company will distribute the other’s products in their domestic markets.
Under a cooperation agreement, Haier will obtain exclusive marketing and distribution of Fisher & Paykel products in China while Fisher & Paykel will obtain exclusive marketing and distribution rights to Haier products in Australia and New Zealand.
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Appliance Retailer understands that Fisher & Paykel will continue to distribute Whirlpool products in New Zealand and Singapore, however representatives of Whirlpool are yet to confirm or deny whether this arrangement will continue or be altered.
Also under the cooperation agreement, the two companies will share logistics, servicing and procurement resources as well as design and manufacturing for products sold into the European and North American markets.
Fisher & Paykel is also launching a capital raising of at least $189 million, comprising a placement of $46 million to Haier, a rights issue of $143 million and a top up placement of up to $12 million.
The net proceeds from the capital raising will be used to reduce the debt of the Fisher & Paykel’s Appliances business, other than $15 million which will be used as equity to the company’s finance business.