ROBIT PLC PRESS RELEASE 12 JANUARY 2017 AT 4.35 P.M.
ROBIT PLC ESTABLISHES MANUFACTURING OPERATIONS IN USA VIA ASSET PURCHASE
Robit Plc has today signed and closed an agreement to purchase the manufacturing assets and IPRs from Halco International LLC and Halco America LLC. Seventy percent of the purchase was paid during closing at this date and thirty percent will be paid by 30th April 2017. Parties have agreed that purchase prices for the deals are not disclosed.
As a part of the global growth strategy Robit Plc strengthens significantly its footprint in USA. Thanks to the purchase, the manufacturing unit in Sherman, near Dallas, is now under Robit Group's ownership. With this strategic step Robit Plc strengthens its growth especially in USA and in the Americas Region. As the result of this purchase, Robit Plc is able to build an own manufacturing unit with related service point and stock, which will be located just in the middle of the region. This way, Robit Plc can secure improved service and delivery to the distributors and the direct customers.
With this purchase Robit Plc receives the strong brand of Halco, excellent presence in USA, IPRs and a base to grow the production volume in USA. Robit Plc will be manufacturing its DTH-line products with the target market being especially the Americas Region. Range covers all common sizes used in quarrying, construction, mining and well drilling.
Halco is a pioneer brand in Down-the-Hole drilling with the brand name originating from Halifax Tool Co, UK 1948. Both Halco companies were owned by Regent, a private equity company from California. Regent acquired Halco from Caterpillar on 2014. Prior the sale in 2014, Caterpillar invested heavily into the facilities and machinery.
The purchase is structured in two parts:
- Robit Plc's 100 percent owned subsidiary Robit USA LLC purchases the manufacturing assets of the operating company Halco America LLC.
- All intellectual property rights from Halco International LLC are purchased by Robit Plc including:
- All trademarks owned by Halco International, including the brand of Halco.
- All patents owned by Halco International.
- All registrations of any of the foregoing, all applications therefor.
Harri Sjöholm, Group CEO
Harri Sjöholm, Group CEO
+358 400 622 092
Mikko Mattila, VP Region Americas
+358 40 736 7001
Skandinaviska Enskilda Banken AB (publ) Helsinki Branch
Tel. +358 9 6162 8101
Robit is a Finnish company selling and servicing global customers in drilling consumables for applications in tunneling, geothermal heating and cooling, construction, and mining industries. The company's business is divided into Top Hammer, Down-the-Hole and Digital Services business units. Robit has 18 own offices and active sales networks in 115 countries and production in Finland, South Korea, Australia and UK. The company is listed in Nasdaq Helsinki Ltd's First North Finland marketplace with trading code ROBIT. For more information, see www.robit.fi.
Nasdaq Helsinki Ltd
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Robit Oyj via Globenewswire