Luxury kitchen furnishings manufacturer Siematic has been acquired by Chinese home appliance supplier Nison Group.
Nison will take a majority stake in Siematic with shareholders Ulrich Siekmann and Kathrin André remaining as minority shareholders.
The closing date of the transaction is still subject to approval by the relevant authorities.
Siematic said the decision was made in light of the brand’s aim to expand its sales network in the Asian market. It claimed that there was currently a challenging environment in the kitchen industry and that the Asian market offered “huge” growth potential.
The objective of the agreement was to speed up Siematic’s global growth and position it as a leading premium and luxury brand for kitchen systems.
The management team headed by Siekmann and Silvia Weppler will remain responsible for international brand management from its headquarters in Löhne, Germany, which will remain the HQ and production site of Siematic.
Retention and expansion of the brand strategy were core components of the planned alliance, Siematic said, as well as ensuring that the brand continued to bear the quality seal ‘Made in Germany’.
“Siematic is very well positioned as a premium brand, especially in the core markets of Europe and the United States,” said Siekmann, chief executive of Siematic. “Now we want to want to embark on the next step in our development together with the Nison Group to grow faster in the key market of China. We are delighted to have Nison Group on board, a partner and expert with a long-term orientation who will support us in the course we have adopted and our brand strategy.”
Siematic recently gained a share of 4% in in terms of revenue in the Chinese market, which was the company’s sixth largest sales market.
“The planned alliance offers both companies excellent opportunities for development,” said founder and chief executive of Nison Group. “Siematic is one of the best-known premium vendors in the global market in the kitchen furniture industry and will enable us to expand our portfolio ideally. We aim to apply Siematic’s brand strategy to the Chinese market and can significantly boost sales in China through our market expertise. Especially in the premium segment we can observe growing demand in China for high-quality craftsmanship, as well as greater sustainability and individualisation. Siematic therefore has outstanding growth opportunities and fits very well with us.”
Siekmann added: “Like our company, Nison is a family-owned company and, with the growth alliance, has great ambitions to position Siematic in the Chinese market in a more targeted manner in individual kitchen business, but above all in project business as well. We are also united by a passion for premium brands and a long-term business approach.”