Kuka’s largest shareholder sells 29.42% of shares to the investment firm, company says acquisition shows its commitment to growth and long-term success in furniture industry
HANGZHOU, China — Full-line upholstery manufacturer Kuka Home has announced that investment firm Infore Group has acquired a controlling interest in its parent company Kuka Group Ltd.
The company said that the acquisition “marks a significant milestone for Kuka Home and demonstrates its commitment to strategic growth and long-term success in the furniture industry.”
In the transaction, the Gu family, Kuka Group’s largest shareholder, sold 29.42% of its shares (valued at 10.3 billion RMB, or $1.37 billion) to Infore Group and will retain ownership of 10.15% of their shares. The remaining 60% of shares will be held by a diverse group of investors.
The company said that Infore Group is controlled by He Jianfeng, the son of Midea Group founder He Xiangjian, and has established connections with the Gu family. Two senior executives at Kuka Home previously held positions at Midea Group.
“We are excited for the next chapter of Kuka Home with Infore Group as our new controlling shareholder,” said Matt Harrison, president of Kuka Home North America. “We look forward to working together to further fortify our position as a global furniture industry leader and solidify growth opportunities in multiple categories. Our customers can rest assured that our unwavering commitment to providing high-quality furniture and maintaining strong relationships remains unchanged.”
Officials added that “Kuka Home remains committed to an aggressive growth strategy in the North American market. The company strives to continuously enhance its offerings and provide exceptional products and services to its valued customers and partners.”
According to its LinkedIn profile, Kuka Home has more than 3,500 retail stores in China and exports to 120 countries. It has three main upholstery plants in China covering about 13 million square feet and employing an estimated 6,000 workers. A vertically integrated manufacturer, it also has its own tannery and foam production facilities.