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.
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.
