Logicdata Electronic & Software Entwicklungs GmbH, a supplier of premium control units and drive systems for electronic height-adjustable furniture and Zhejiang Jiecang Linear Motion Technology Co Ltd, a Shanghai based supplier of linear motion components for office and home furniture, signed a definitive agreement under which Jiecang will acquire 100% of the shares of Logicdata—subject to pending regulatory approvals which are expected to conclude within the next 3-6 weeks.
Merger Creates One-Stop-Shop For Linear Motion Components
This merger will create a leading worldwide one-stop-shop linear motion components and systems supplier with about 2,500 employees worldwide and $350 million in annual revenues. By synergistically combining innovation power, cost efficient manufacturing, a strong global presence and customer focus with solid profitability and financial strength, the group expects to accelerate innovation and profitable growth in the coming years. Logicdata with currently about 270 employees worldwide, will continue to operate and grow as a separate company, retaining its name/strong premium innovative brand, product portfolio and long-lasting customer relations while increasingly using manufacturing and sourcing synergies within the Jiecang group. As a part of the transaction Jiecang will invest 20 M€ ($24.3M) into Logicdata´s product innovation and future growth.
Mr. Renchang Hu, founder and chairman of Jiecang states; “With the acquisition of Logicdata we are adding an outstanding team, great innovation power, a valuable long-standing customer base in Europe and the US and a high-performance premium product portfolio. I would like to warmly welcome the entire Logicdata team as well as all Logicdata customers to our group and I´m looking forward to a great joint future of prosperous growth with a strong focus on fulfilling our client’s needs in a fast expanding industry.”
Walter Koch, founder, majority owner and CEO of Logicdata states; “We are happy that through this synergetic merger with a highly industrialized and financially strong partner we will be able to accelerate our innovative, customer centric growth path. Based on the combined competencies of both Jiecang and Logicdata, I´m looking forward to serving our global customer base even better with innovative and cost competitive products in the coming years.”