Japan's Kyocera Buys Lithuanian Woodworking Tool Maker.
M2 EQUITYBITES-April 28, 2015-Japan's Kyocera Buys Lithuanian Woodworking Tool Maker
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28 April 2015 - Japanese industrial group The Kyocera Group's Kyocera Unimerco A/S industrial cutting tools subsidiary has acquired all shares of Lithuanian woodworking tools manufacturer Garsdalo Medienos Technologija UAB, the company said on Tuesday.
The share transfer agreement was concluded on April 27, making GMT a wholly owned subsidiary of KUA. Other terms of the deal were not disclosed.
Through this acquisition, KUA aims to strengthen its woodworking tool business currently centered in Northern Europe, and nearly double its sales in this business segment by FY2020 (April 2019 to March 2020).
In Central and Eastern Europe, the woodworking market for processing building material and furniture is expanding, backed by low-cost and abundant labor, resulting in an increase in demand for processing tools.
Based on this growth, KUA had been considering expanding its business into these markets.
In addition to its core business of manufacturing and supplying cutting tools for the automotive industry, KUA also markets custom-made tools in the field of woodworking based on the company's strong technological capabilities, and has a record of offering woodworking tools for processing items such as window frames and kitchen furniture.
Meanwhile, GMT, which has steadily expanded its business since foundation in 1998, possesses strengths in processing tools for general furniture utilized by customers including major furniture manufacturers.
Since GMT became a distributor of KUA (then Unimerco A/S) in 1998, the companies have developed a relationship of trust through sales of KUA's cutting tools in Central and Eastern Europe.
By welcoming GMT into its group, KUA aims to create synergies by expanding sales channels in Central and Eastern Europe and strengthening its product lineup.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Apr 28, 2015|
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