KE Holdings expands home renovation business with acquisition of Shengdu for RMB8B

  • KE Holdings inks agreement to acquire 100% equity interests in Shengdu Home Renovation Co., Ltd. from its existing shareholders, for a total consideration capped at RMB8B consisting of cash and equity.

  • The upfront acquisition will be for certain equity interests of the Target, and the take over of remaining stake, will be subject to satisfaction of certain performance target criteria and other conditions.
  • The transaction is currently expected to close in H1 2022.
  • The proposed acquisition of Shengdu will strengthen vertical integration by deepening the standardization in home renovation products, services and professionals.

Author: Mamta Mayani, Seeking Alpha