(Ecofin Agency) - Swedish home appliance giant Electrolux announced in a statement released Nov. 10 it will buy South African water heater producer Kwikot Group, for two billion Swedish crowns (about $221 million).

Based in Johannesburg, Kwikot achieved a turnover of 730 million crowns ($81 million) and an operating margin of more than 20%, the same source added. By acquiring the SA-based firm, Electrolux aims to broaden its home comfort product range and offers a strong platform for growth opportunities in Africa.

“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 relevant for our other product categories,” said Dan Arler, head of Electrolux Major Appliances Europe, Middle East and Africa.

The transaction which is still to receive the necessary regulatory approvals, should be finalized latest by June 30, 2017.