The Corporate team assist International Client, Guangdong Xinbao Electrical Appliance Holdings

22nd November 2023 | James Crook | Corporate and Commercial, Acquisition, International

Sherrards assisted Chinese company Guangdong Xinbao Electrical Appliance Holdings, which trades under the brand Donlim, with English law aspects for the acquisition of the entire share capital of Morphy Richards Consumer Appliances Limited (MRCA), incorporated in England

Sherrards coordinated directly with Donlim and acted alongside a major law firm in China, as the transaction was subject to extensive negotiations, including requiring approval from the Chinese government. The transaction was completed in March 2023.

Donlim is headquartered in Shunde, Guangdon, China, and is a major manufacturer of home kitchen appliances and other electrical products, with over 28,000 staff and revenues of RMB 14.9 billion in 2021. Donlim wished to expand its portfolio of international brands by acquiring Morphy Richards, a well regarded British brand established in 1936, and for whom Donlim had been manufacturing products under contract for some time.  MRCA was, before the transaction, owned by Glen Dimplex, an Irish company, and has substantial operations in the UK in addition to other major markets in China, Ireland, Australia and New Zealand. Glen Dimplex retained the rights to the Morphy Richards brand in other key international markets. The transaction received significant press coverage in the UK and Ireland.

Following completion, Donlim has acquired a permanent presence in the UK and will use this as a platform to expand its consumer appliances offering in the UK market, as well as now having the benefit of an esteemed British brand to use in its operations overseas.

To find out more, contact James Crook.