GreatStar Industrial announced that Hong Kong GreatStar International Co., Ltd., a wholly-owned subsidiary of the company, acquired 100% equity of Geelong Holdings Limited held by Orchid Asia Investment Management Group Co., Ltd. at a transaction price of US$128.24 million.
Geelong was established in 1993 and sales channels cover large supermarkets such as Home Depot, Menards, and Walmart. It has reached long-term cooperation agreements with major customers, with average cooperation period exceeding 15 years. As a service-oriented company, Geelong relies on the localized sales team in the United States and provides localized one-stop services for major supermarket customers to enhance customer loyalty.
On July 2, the two parties held an equity delivery ceremony in Zhongshan, Guangdong, and completed the equity delivery in accordance with the purchase agreement. Zhang Minhui, representative of Orchid Asia, and Wang Weiyi, senior vice president of GreatStar Industrial, attended the ceremony.
The acquisition was unanimously approved by the management of both parties. Ms. Zhang Minhui, the representative of Orchid Asia, expressed her gratitude to the Geelong management team for their hard work in the past and wished Geelong to achieve better development in the future.
Wang Weiyi, senior vice president of GreatStar Industrial, expressed his welcome to Geelong, and said GreatStar will strengthen cooperation with Geelong in the tool storage business in the future.
According to the announcement, GreatStar entered this new field in 2018 through the acquisition of Lista, the leading European tool storage brand. Through active industrial integration and channel expansion, the company's tool storage business achieved an operating income of 939 million yuan in 2020. In the future, with the help of the rich experience and comprehensive capabilities accumulated in industrial mergers and business integration, the company will collaborate with Geelong in research and development, supply chain management and production capacity, in order to increase the market share in the global tool storage market while achieving a substantial return on investment.
