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Teco to acquire Italian firm

Teco to acquire Italian firm

Taipei, Aug. 1 (CNA) Teco Electric & Machinery Co., one of Taiwan's leading industrial motor suppliers, has agreed to acquire Motovario S.p.A. of Italy in a bid to expand into the power transmission systems sector.
Teco said its board of directors has approved a proposal to buy a 100 percent stake in Motovario for 186 million euros or about NT$6.5 billion (US$206 million). Teco added that the deal is expected to be completed by the end of this year when the company expects to start including the Italian firm's sales on its books. Teco spokesperson Yeh Wen-chung said the acquisition is part of the company's strategy to expand from stand-alone products into system products. He added that the deal is expected to strengthen Teco's ability to develop power transmission systems.
Teco will also take advantage of the acquisition to further enhance its capability in automation and smart device manufacturing, which is expected to herald its roll out of industry 4.0, Yeh said.
"We are all incredibly excited about this transaction," Motovario Chief Executive Officer Maurizio Negro said in a statement.
"I am convinced that TECO will strengthen the growth path of Motovario favoring further market expansion, especially in Southeast Asia, developing significant synergies in research and products development," he added.
Founded in 1965, Motovario produces and markets large gear reducers, motors and other power-transmission products, with particular focus on worm gears for which it is a global player.
Motovario currently operates highly automated production facilities in Italy and Spain and also has 150 sales agents in 60 countries. In 2014, the firm greatly expanded its business by acquiring Pujol, a gear-reducer manufacturer based in Spain.
In 2014, Motovario posted about NT$4 billion in sales and was profitable, Yeh said. The European market accounted for more than 50 percent of the company's total sales last year, while the Italian firm also shipped its products to other markets, including the United States, China and Indonesia.
Yeh noted that Teco has been active in the European market for about 20 years and the deal is expected to raise revenue and boost market share there.
Teco is the third largest medium-voltage motor producer in the world, with about 8 percent of the global market and the fifth largest supplier of low-voltage A/C motors, with a 4 percent market share.
In 2015, Teco posted NT$2.05 in earnings per share (EPS), compared with NT$2.00 in EPS a year earlier. (By Jalen Chung and Frances Huang)

Updated : 2021-09-20 08:18 GMT+08:00