The STIHL Group has acquired a "substantial minority share" of the Globe Tools Group - the manufacturer of corded and cordless outdoor power tools behind the 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."
The two companies say they 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 say they will profit from the STIHL Group's many decades of experience and can continue its 'dynamic growth course with fresh capital'.
Globe Tools 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 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.
Globe say that Greenworks will remain an independent brand. STIHL is buying a minority stake. Globe Tools remains a separate company and will continue to pursue its own production and brand strategy in the future. This is a business cooperation and partnership in development and manufacturing only.
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.
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