(Yicai) Sept. 3 -- Shares in Ningbo Daye Garden Machinery surged by the exchange-imposed limit at the open today after the Chinese manufacturer of garden power machinery said it is taking over German rival AL-KO Geräte for EUR20 million (USD22.1 million) to expand its global footprint.

Daye’s share price [SHE:300879] closed up 10.8 percent at CNY15.99 (USD2.25). Earlier in the day it jumped 20 percent to hit CNY17.73.

Daye is buying a 100 percent stake in Koetz-based AL-KO Geräte, supplier of garden tool brands such as AL-KO, SOLO, Masport and Morrison, the Ningbo-based company said yesterday.

AL-KO Geräte’s revenue last year was nearly triple that of Daye at EUR228.7 million (USD252.8 million), Daye said, without mentioning the net profit for the year. As of Dec. 31, 2023, the German firm had assets of EUR29.4 million (USD32.5 million), equal to 28.2 percent of Daye's at the same point in time.

The acquisition will provide Daye with manufacturing bases and technology development centers in Europe, Daye said. AL-KO Geräte also has long-term tie-ups with multinationals and shopping malls such as Stihl, Iseki, Bunnings, Bauhaus, and OBI. Daye will leverage these sales channels to respond to local customers’ needs quicker.

Daye sells most of its products overseas and boasts stable market share in Europe, Oceania and other regions. It counts large retailers such as Homedepot, Husqvarna Forest & Garden, Kingfisher Group, Walmart, and ADEO among its clients.

Editor: Kim Taylor