Midea to Acquire Chinese Operations of Dutch Heating Leader BDR Thermea

Midea Group will acquire BDR Thermea’s China operations to boost global expansion and shift towards commercial solutions. The deal includes brands, assets, and bolsters Midea’s international sales.

Key Points

• Midea Group plans to acquire the China operations of BDR Thermea, enhancing its global expansion and commercial focus. The deal covers manufacturing, sales, and technologies, allowing Midea to supply boilers to BDR’s international markets. They will maintain four brands in China, while BDR shifts to global sourcing. The transaction value remains undisclosed.

• Midea’s international and commercial segments are key growth drivers, with overseas sales contributing 42% of total revenue and commercial solutions 26%, as per its annual report. In 2024, Midea’s net profit rose 14% to CNY38.5 billion, while revenue increased 9% to CNY409.1 billion.

• Conversely, BDR faced challenges due to weak European demand, posting a net loss of EUR71.9 million, though it rebounded in 2023 with a profit of EUR30.4 million. Formed in 2009, BDR operates in over 50 countries with 6,800 employees.

Midea Group, a leading Chinese home appliance manufacturer, plans to acquire the China operations of BDR Thermea Group, a Dutch provider of heating and ventilation systems. This strategic move aims to boost Midea’s global expansion and strengthen its transition towards commercial solutions. The acquisition will provide Midea with control over BDR’s Chinese assets, including manufacturing units, sales networks, and core technologies. It will also enable Midea to begin offering boilers and related services to BDR’s markets abroad.

Midea intends to continue operating BDR’s well-known brands—Baxi, De Dietrich, Brötje, and Chappée—in China. In contrast, BDR will retain a leaner supply chain in China, focusing mainly on global sourcing. The financial details of the transaction have not been disclosed.

The acquisition aligns with Midea’s strategic focus on bolstering its international presence and commercial sector. In 2024, overseas sales contributed to 42 percent of Midea’s revenue, and commercial-industrial solutions accounted for 26 percent. The company experienced a profitable year, with a 14 percent increase in net profit to CNY38.5 billion (USD5.3 billion) and a 9 percent rise in total revenue to CNY409.1 billion (USD56.8 billion).

Conversely, BDR faced challenges last year due to sluggish demand in Europe. The company reported a net loss of EUR71.9 million (USD79.9 million), a stark contrast to its 2023 profit of EUR30.4 million (USD33.8 million), while its revenue dropped 11 percent to EUR2 billion (USD2.2 billion). BDR, formed in 2009 from the merger of De Dietrich Remeha Group and Baxi Group, operates in over 50 countries with a workforce of 6,800 employees.

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