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F&P Appliances supply deal with Haier extended, $20-35m revenue expected


Fisher & Paykel Appliances Holdings has reached agreement with 20 percent shareholder Haier for the supply of components and technology, expected to generate revenue of $20-35 million a year.

NBR staff
Mon, 21 Mar 2011

Fisher & Paykel Appliances has reached agreement with 20 percent shareholder Haier for the supply of components and technology, mainly motors.

The deal is an extension to business already conducted with Haier, a Chinese appliance giant, and is expected to generate revenue of about $20 million to $35 million a year, F & P Appliances said in an announcement to NZX.

The supply arrangement is for an initial three years, with provision for annual renewals for up to a further seven years.

The arrangement includes minimum agreed volumes and input cost adjustment mechanisms, and was expected to require capital investment by F&P Appliances of about $25m.

The supply of components was expected to start in early 2012.

Shareholder approval for the deal was needed under NZX listing rules as a material transaction involving a related party, unless a waiver of that requirement was obtained.

NBR staff
Mon, 21 Mar 2011
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F&P Appliances supply deal with Haier extended, $20-35m revenue expected
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