(Yicai) Oct. 17 -- Todaytec Digital’s shares jumped after the major Chinese producer of thermal transfer materials for barcode printing said it will buy two European competitors.

Todaytec [SHE: 300743] finished 5.7 percent higher at CNY14.83 (USD2.08) a share today, after earlier jumping by as much as 16.4 percent. The broader Shenzhen market fell 0.7 percent.

Todaytec will acquire all of Germany’s Calor and France’s Regma Transfert Thermique through its wholly-owned subsidiary in Hong Kong for EUR5.9 million (USD6.4 million), the Hangzhou-based firm announced yesterday.

Calor and RTT are an independent business group with 65 employees, working exclusively on the development, production, and sale of thermal transfer ribbons, according to their website. These ribbons are a type of printer consumable used to print high-quality images and text onto various materials through heating.

Calor and RTT’s products enjoy high brand recognition in the industry, have stable customer bases, solid sales channels, and well-established sales channels in Europe, Todaytec said, adding that the deal will help the firm enhance its product competitiveness, improve its business operations in Europe, and facilitate the entry of its products into mainstream European markets.

The target companies are both owned by German entrepreneur Andreas Emonts-pohl and his wife. Emonts-pohl will remain as chief executive at Calor RTT following the deal, Todaytec noted.

Todaytec was one of the first companies in China to develop thermal transfer ribbons for barcode printing. Last year, nearly 90 percent of its revenue came from this business, with about one-third of its income coming from overseas, according to its 2023 financial statement.

Editor: Futura Costaglione