Shanghai – Orrick, Herrington & Sutcliffe LLP is representing Zhejiang Jiayuan Real Estate Group (the “Jiayuan Group”) in its acquisition of Jiangsu Five Star Appliance Co. Ltd. from NYSE-listed Best Buy Co., Inc., the world’s largest consumer electronics chain.
Jiangsu Five Star Appliance, a China division of Best Buy, is the fourth-largest appliance and consumer electronics retailer with 184 stores located in Jiangsu, Anhui, Zhejiang, Shandong, Henan, Sichuan and Yunnan.
“The acquisition demonstrates an expansion of Jiayuan Group, one of the largest real estate groups operating in 20 cities across China,” said partner Jeffrey Sun. “Jiayuan Group will benefit from Jiangsu Five Star’s retail network for supporting and strengthening its commercial real estate development.”
The transaction also marks Best Buy’s exit from the China market, without affecting its continuous investment in other China-based private label operations.
The deal, which is subject to regulatory approval, is expected to close in the first quarter of fiscal 2016.
The Orrick team is led by Shanghai corporate partner Jeffrey Sun, along with Shanghai corporate consultant Chen Lu.