(Yicai Global) Feb. 7 -- Jack Sewing Machine Co. plans to buy leading Italian makers of industrial sewing machines for a total EUR23.2 million (USD28.6 million) as the Chinese firm looks to gain a foothold in Italy's garment equipment industry.
The company, based in Taizhou in China's eastern province of Zhejiang, will buy all of Finver SPA, which owns 5 percent of Vinco SRL and half of ViBeMac SPA, it said in a statement. Jack Sewing will also directly buy a 95 percent share of Vinco and 30 percent of ViBeMac, giving it total equities of 100 percent and 80 percent, respectively.
Jack Sewing Chairman Zhao Xinqing has used overseas mergers and acquisitions to expand its business since 2009, buying German digital cutting company Bullmer Gmbh and Maica SPA, an Italian producer of intelligent manufacturing solutions for shirts. Global sales of industrial sewing machines, heavy-duty equipment that are used in the production of clothes, shoes, bags and other commercial items, are forecast to grow between 20 percent and 45 percent a year through 2022.
Shares of Jack Sewing [SHA:603337] gained 5.8 percent today to close at CNY47.62 (USD7.60) each despite a 1.8 percent slide in the Shanghai Stock Exchange Composite Index.
Jack Sewing aims to expand its product categories and customer base in Italy with a particular focus on automated jeans production. ViBeMac produces machinery for making jeans.