A Hisense statement confirmed the purchase of "all equity and assets of Sharp's TV factory in Mexico for $23.7 million with rights to use the Sharp brand name and all its channel resources in both North and South American regions."
While Hisense is a strong contender in the Chinese TV market, it has struggled to make gains in the U.S., which is dominated by brands such as Samsung, LG and Sony.
Sharp's presence in the U.S. market has been shrinking in recent years but the brand is a familiar one, and Hisense has been aggressive in its development of 4K and OLED models. Hisense is well-positioned to make a splash outside of the Asian market, especially in the lower-priced models it specializes in.
Hisense is also a major global player in appliances, computers and projectors. Its products sell in 130 countries.
Sharp released a statement:
"As announced earlier today, Sharp Corporation has agreed to sell its stake in its TV manufacturing facility in Mexico and enter into a brand licensing agreement with Hisense for consumer TVs in the Americas beginning January, 2016. Until then, we’ll continue to manufacture and sell our current line-up of Aquos TVs and fully support sell-through into Q1 of 2016 with our channel partners. Customers should be assured that Sharp will continue to provide both in-warranty and out-of-warranty service and parts availability for years to come on these products.
"Sharp Electronics will continue to grow and invest in its line of consumer home appliances including microwave ovens, air purifiers and the recently launched Tea- Ceré Matcha brewing appliance. Also unchanged, is the sales and marketing through authorized distributors of Sharp’s entire B2B product portfolio, including displays, for business and commercial applications."