(Yicai Global) Feb. 12 -- Guangzhou KDT Machinery Co. will buy 75 percent of Masterwood, an Italian computer numerical control (CNC) woodworking machinery brand for EUR16 million (USD20 million) through its Hong Kong unit to improve its products technology and expand its global market share.

The wholly-owned subsidiary KDT MAC (Hong Kong) Ltd. signed a Sale and Purchase Agreement with three individual shareholders of Masterwood S.p.A. on Feb. 10 to purchase 75 percent of the stake in total, the Guangzhou-based woodworking machinery maker announced yesterday.

KDT MAC will directly hold a 25.5 percent of stake of Masterwood and indirectly have 49.5 percent of its stake by holding 100 percent of equity in Muti 2 S.r.l., a holding company whose only asset is 49.5 percent of Masterwood's shares and which plies no actual business, per the announcement.

The two set about eight times Masterwood's earnings before interest, taxes, depreciation and amortization (EBITDA) in 2016 as the core pricing basis while combining indexes such as Masterwood's cash balance at the end of last year to determine the transaction price, the announcement said. The target is a high-end CNC machinery company focused on research and development as well as manufacturing. The acquisition will enhance KDT's CNC processing technology and accelerate the upgrade of its automation. Masterwood has developed well and enjoys high brand awareness in Europe and North and South America, which will help KDT MAC develop its international market.