The acquisition is subject to regulatory approvals being obtained before the end of June 2017.
"We are excited about a next chapter in Kwikot’s growth story," the company said on Thursday.
Kwikot CEO Pieter Malan said: "We ... relish the opportunity to co-operate with Electrolux given their excellent track record of investing for growth."
Kwikot is a privately owned company based in Johannesburg, where it also has production facilities and its main warehouse. It has 800 employees. Products include large capacity electric and solar water heaters, heat pumps, kitchen sinks, consumables and accessories, sold mainly in SA and neighbouring countries.
"Acquiring Kwikot Group will provide a step change for Electrolux in Southern Africa, through the complementary product offering, access to important customer segments and by adding a strong distribution and service network in the region," Dan Arler, head of Electrolux major appliances division for Europe, the Middle East and Africa (EMEA), said.
"The acquisition ... broadens the Electrolux offering ... for home comfort in areas such as indoor air quality and water treatment. We will now have a full range of water heating products supporting our continued growth and profitability."
Electrolux had mainly sold small and major appliances under brands such as Kelvinator, AEG and Electrolux in SA. It was planning to build on Kwikot’s existing manufacturing facilities.
Management would remain and the proposed merger was expected to result in zero net job losses.
"We look forward to investing in Kwikot’s existing operations and introducing our world-class Electrolux manufacturing system here," Ian Banes, senior vice-president of the EMEA division said.
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Danette Breitenbach 20 hours
