VERTICAL INTEGRATION:The acquisition would help the tire manufacturer to expand its presence in Europe, with the company hoping to duplicate its success in the US
Taipei Times
Date: Sep 29, 2017
By: Kuo Chia-erh / Staff reporter
Tire maker Kenda Rubber Industrial Co (建大輪胎) said it is to fully acquire Denmark-headquartered STARCO Europe A/S for no more than 18 million euros (US$21.2 million) to pursue vertical integration.
The acquisition, which is scheduled to be completed on Monday, also aims to expand the company’s presence in Europe, according to a company filing with the Taiwan Stock Exchange.
Revenue generated from European customers only makes up 8 percent of the company’s total sales, while sales in the US contribute nearly 24 percent, data showed.
“The transaction is Kenda’s first acquisition in the European market and we aim to duplicate our success [of developing a US business] there,” a company official said by telephone yesterday.
The official, who asked to remain anonymous, said the two parties have been working together on the research and development of wheels for industrial machines for years. [FULL STORY]