Guangzhou KDT Machinery Co. will buy 75 percent of Masterwood, an Italian computer numerical control (CNC) woodworking machinery brand for EUR16 million (USD20 million/RMB124 million) through its Hong Kong unit to improve its products technology and expand its global market share.
A Sale and Purchase Agreement was signed between the wholly-owned subsidiary KDT MAC (Hong Kong) Ltd. and three individual shareholders of Masterwood SpA on February 10, according to an announcement published by the Guangzhou-based woodworking machinery producer yesterday.
In the 75 percent of stake purchased, KDT MAC will directly hold 25.5 percent and indirectly own 49.5 percent by holding 100 percent of the equity in company Muti 2 S.r.l., which piles no business but contain 49.5 percent of Masterwood’s shares. The transition price was determined by Masterwood’s earnings (EUR1.6 million) in 2016, as well as its cash balance at the end of last year.
KDT is a leading panel machinery manufacturer in China with rapid growth in recent years, selling equipment to over 50 countries and regions worldwide. Relying on Masterwood’s knowledge and experience, the acquisition will enhance KDT’s CNC processing technology and accelerate the upgrade of its automation. Meanwhile, the high brand awareness of Masterwood worldwide will help KDT MAC expand its international market.