Husqvarna announced March 17 that it signed an agreement with Jenn Feng Co., Ltd. for acquisition of the company’s operation in outdoor products.
Jenn Feng, a listed Taiwanese company, produces chain saws and trimmers for the consumer market. Its product offering also consists of lawn mowers, high-pressure washers and generators.
In 2007, the operation to be acquired reported sales of approximately $120 million, of which more than half referred to Europe. Chain saws accounted for 50 percent of sales. The company has about 1,250 employees, and production is mainly based in China.
The acquisition gives the Husqvarna Group a greater presence, as well as a wider manufacturing base in Asia. It also gives Husqvarna access to the McCulloch brand in the North American market. Husqvarna already owns the rights to this brand in the rest of the world.
The acquisition is scheduled for completion in the second quarter of 2008, subject to approval by the relevant authorities and the annual general meeting to be held by Jenn Feng Co., Ltd.
“Jenn Feng products will complement the Husqvarna range of handheld outdoor products for the consumer market,” said Bengt Andersson, president and CEO of Husqvarna. “The operation is a very good fit with Husqvarna, and offers substantial opportunities for increasing sales of Jenn Feng products through our global sales organization. McCulloch is a well-known brand that will be a good complement to our other brands in North America.”