MOORESVILLE, N.C. -- The STIHL Group has acquired a substantial minority share of the Globe Tools Group – a manufacturer of corded and cordless outdoor power tools under its Greenworks brand. "Our stake in Globe Tools means we are systematically consolidating our strategy in the growing market for cordless power tools. We will utilize synergy effects in the development and production of cordless products," said STIHL executive board chairman Dr. Bertram Kandziora.
"We are pleased that we will have STIHL on board in the future as a strong and reliable partner. This involvement is a milestone in our growth story," said Yin Chen, managing owner of the Globe Tools Group.
Globe Tools is a supplier of cordless and corded electric power tools to customers in North America in particular, but also in Europe. STIHL is a worldwide supplier of products for professionals in forestry and agriculture, landscape care and the construction industry. The two companies complement each other in the market for cordless and corded electric power tools and intend to create a cooperative partnership and achieve gains in efficiency.
"This move enables us to quickly expand the STIHL cordless product line for the customers of our servicing dealers in the entry-level segment and offer high class products in STIHL quality at competitive prices," said Kandziora.
Moreover, STIHL makes use of the favorable production costs of Globe Tools in China, and also the procurement of components. Globe Tools profits from the STIHL Group's many decades of experience and can continue its growth course with fresh capital.
As the owner and managing director, Chen runs the Globe Tools Group as a family company. Globe Tools has a high level of vertical integration and now produces around 8 million cordless and corded electric products annually. Turnover last year amounted to $325 million U.S.
The Globe Tools Group has a workforce of around 4,000 men and women in Hong Kong, Changzhou (People's Republic of China), Mooresville, North Carolina, Newmarket, Ontario, Moscow and Cologne. The development and production of products takes place mainly in Changzhou, while marketing and sales are handled by the companies in other countries.
The participation agreements were concluded by the STIHL Group and the Globe Tools Group on May 13. It was agreed not to disclose the price of the participation. Approvals from antitrust and other authorities in several countries still have to be granted before the participation can be completed and cooperation begun.
