After the acquisition, Giant Star Technology aims to become the No.1 in the global hand tool industry

On June 3, Giant Star Technology released an announcement on the progress of the asset acquisition. The announcement showed that as of the announcement date, Giant Star Technology and BeA had completed the asset delivery in accordance with the transaction agreement, and the asset acquisition transaction had been completed.

Joining forces with BeA, Giant Star Technology strives to become the world's number one in the industry

This acquisition by Giant Star Technology was made in the name of its wholly-owned subsidiary European Giant Star, purchasing the relevant assets of Joh. Friedrich Behrens AG (hereinafter referred to as BeA) by paying cash . The transaction price was 27.9 million euros. The acquired assets include real estate, machinery and equipment, intellectual property rights, inventory, and equity of some subsidiaries related to BeA's main business.

BeA was founded in 1910. Its original company is the most famous power fastening tool manufacturer in Europe. It has two top brands representing the field of fastening technology, namely "BeA" and "KMR". The company has 12 subsidiaries and 2 large factories in Europe. The products it produces are mainly used in the furniture, packaging and construction industries.

Giant Star Technology said that through the acquisition of the BeA brand, it will accelerate the research of power tool products and accessories, and rely on the consolidation of BeA and the existing North American ARROW brand to sprint towards becoming the world's largest power fastening tool leader.

At the same time, it will make full use of the acquired assets of the German parent company and subsidiaries in France, Italy and other countries to strengthen Giant Star Technology 's warehousing, logistics and distribution system throughout Europe, allowing the company's products to expand into channels other than e-commerce, such as traditional distribution channels in Europe , in order to expand the global market.

When talking about the development direction, Giant Star Technology stated that in the future the company will make long-term investment in and development of power tool products, enrich the company's product line, and build the company's own power tool brand .

Giant Star Technology's first quarter revenue was 1.981 billion yuan, with a net profit of 257 million yuan

As a leading overseas tool company specializing in the development, production and sales of mid-to-high-end hand tools, power tools and other tools, Giant Technology also achieved good revenue in the first quarter of 2021.

Financial report data shows that in the first quarter of 2021, Giant Technology achieved operating income of 1.98 billion yuan, an increase of 49.94% compared with 1.32 billion yuan in the same period of 2020; net profit attributable to listed shareholders was 257 million yuan, an increase of 41.35% compared with 181 million yuan in 2020, which has exceeded the upper limit of the previous first quarter forecast range.

From the perspective of product classification, hand tools and power tools, laser measuring instruments, storage cabinets and personal protective equipment are still the main categories of Giant Star Technology, accounting for a large share of revenue. Among them, gardening and woodworking tools are still popular due to the demand of the European and American markets.

When it comes to future development, Giant Star Technology said it will accelerate the development of its existing own brands ( Workpro, Pony, Everbrite), increase its own brand market share in Europe and the United States, and accelerate its globalization layout. From this point of view, the completion of the acquisition of BeA is already a big step for Giant Star Technology to move towards globalization, and its future development is just around the corner.

Giant Star Technology

Acquisition

First quarter report