iRobot in Chinese hands after Amazon’s stop

The current crisis follows almost a year later the definitive decline of Amazon’s planned acquisition. The e-commerce giant had proposed a $1.7 billion deal in August 2022, but the deal faced firm opposition from European antitrust authorities. The EU Commission had in fact blocked the agreement, arguing that Amazon could reduce the visibility of competing products on its marketplace, damaging competition in key markets such as France, Germany, Italy and Spain.

In addition to the failed agreement with Big Tech, iRobot has suffered heavily from commercial pressure from Chinese rivals, capable of placing alternatives on the market at significantly lower prices. Adding to the financial picture are increasing US duties, with import tariffs rising to 46% for goods from Vietnam, the country where the majority of devices destined for the American market are manufactured.

Gary Cohen, iRobot’s chief executive, described the announcement as a key milestone in securing the company’s long-term future. According to the CEO, the transaction will strengthen the group’s financial position, ensuring continuity for customers and partners. The stated goal is to combine iRobot’s innovation and consumer-focused design with Picea’s manufacturing and technical expertise, to continue developing the technologies that have defined the brand for over three decades.

Launched on the market in 2002 with the first Roomba model, iRobot has sold millions of units worldwide, becoming synonymous with automated home cleaning and developing advanced mapping and navigation concepts. Picea Robotics, the new owner, is a global manufacturer with research and development facilities in China and Vietnam; the company has approximately 7,000 employees and boasts a historical sales volume of more than 20 million robotic vacuum cleaners.