(Yicai) May 13 -- Midea Group plans to acquire the China operations of Dutch heating and ventilation systems provider BDR Thermea Group, to accelerate the Chinese home appliance giant’s global expansion and bolster its shift towards more commercial solutions.

The acquisition will grant Midea control over BDR's existing Chinese assets including manufacturing facilities, sales networks and core technologies, both companies said in separate statements yesterday. It will also enable Foshan-based Midea to start supplying boilers and services to BDR's overseas markets.

Midea will continue operating BDR's four major brands in China, namely Baxi, De Dietrich, Brötje and Chappée, the two firms said. BDR, meanwhile, will maintain slimmed-down supply chain operations in China and focus on global sourcing. Neither party disclosed the transaction value of the deal.

Midea has been prioritizing the development of its international and commercial segments to drive growth. Overseas sales accounted for 42 percent of the company’s total revenue last year, while commercial-industrial solutions made up 26 percent, according to its annual report.

2024 was a profitable year for Midea. The firm logged a 14 percent jump in net profit from the year before to CNY38.5 billion (USD5.3 billion), while revenue climbed 9 percent to CNY409.1 billion (USD56.8 billion), the report said.

BDR, though, had a difficult year last year due to weak European demand. The company posted a net loss of EUR71.9 million (USD79.9 million), whereas in 2023 it raked in profit of EUR30.4 million (USD33.8 million), according to its financial report. Revenue plunged 11 percent to EUR2 billion (USD2.2 billion).

BDR was formed in 2009 through the merger of European heating firms De Dietrich Remeha Group and Baxi Group. As of the end of last year, the Apeldoorn-based company was operating in over 50 countries and employed 6,800 people.

Editor: Kim Taylor