MOORESVILLE, N.C., May 24, 2016 /PRNewswire/ -- The STIHL Group has acquired a substantial minority share of the Globe Tools Group– a successful manufacturer of corded and cordless outdoor power tools under their 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", explained STIHL executive board chairman Dr. Bertram Kandziora. The managing owner of the Globe Tools Group, Mr. Yin Chen, said: "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."
STIHL starts offensive in market of the future
Globe Tools is a successful supplier of cordless and corded electric power tools, to customers in North America in particular, but also in Europe. STIHL is a worldwide leading supplier of products for professionals in forestry and agriculture, landscape care and the construction industry as well as for demanding private users. 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 Dr. Kandziora. Moreover, STIHL makes use of the favorable production costs of Globe Tools in China, and also the procurement of components. On the other hand, Globe Tools profits from the STIHL Group's many decades of experience and can continue its dynamic growth course with fresh capital.
Owner and managing director Yin 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 US$ 325 million.
The Globe Tools Group has a workforce of some 4,000 men and women in Hong Kong, Changzhou (People's Republic of China), Mooresville/NC (U.S.A.), Newmarket/ON (Canada), 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 13th, 2016. 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.
About Globe Tools:
Established in 2002, Globe Tools Co., Ltd., Changzhou, China, manufactures and provides key components and finished goods in the corded and cordless garden tools, air compressors, pressure washers and generators. The company's fast-paced growth has led to global expansion with headquarters in the USA, Canada, Europe and Russia. Globe Tools is segmented by OEM, private label and Greenworks® brand corded and cordless tools which offer the widest product line-up in the mass market retail sector. Globe's manufacturing process includes comprehensive testing to ensure the highest level of quality. Globe Tools' US headquarters are in Mooresville, North Carolina. For more information, visit greenworkstools.com.
SOURCE Globe Tools