Best Buy buys China's Jiangsu Five Star

Jiangsu Five Stars opts for strategic buyer over an IPO.
In an unusual departure from the IPO frenzy that has been galvanising ChinaÆs private-equity market, ChinaÆs fourth-largest electronic appliance maker Jiangsu Five Star Appliance has agreed to a two-step trade sale to Best Buy, a leading US player.

Credit Suisse identified the target and advised Best Buy on the deal.

Jiangsu Five Star sells consumer electronics and home appliances such as air conditioners, TVs and white goods. The company had sales of $700 million in 2005 and has 12,000 employees. A source close to the deal indicated the company was very profitable. Between 2004 and 2008, the overall compound annual growth rate in terms of sales of the sector in China was 11%.

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