Stroller maker Goodbaby buys Cybex

Goodbaby International, the largest supplier of strollers in China, North America and Europe, made its first acquisition after listing in Hong Kong in 2010 by purchasing Cybex, a German child safety brand, for €70.7 million (HK$750.77 million).

The mainland-based company said in a statement to the Hong Kong stock exchange that it will offer €38.5 million in cash and issue 100 million new shares for the entire stake in Columbus Holding, which is responsible for design and sales under Cybex.

The market reacted positively to the move as Goodbaby's shares jumped as much as 14 per cent yesterday to trade at HK$3.90, marking the biggest intraday gain in the stock since August 21, 2012, before closing at a two-week high of HK$3.74.

"It's a sensible move," said Peter Chu, an analyst from Yuanta Securities. "This acquisition can increase the company's presence in both international and China's child safety markets."

A company report said that 90 per cent of Cybex's business is related to car seat safety, a segment Goodbaby currently lacks.

Established in Germany in 2005, Columbus has a presence across continental Europe, Britain and Hong Kong. For 2011, the company registered profit before taxation of HK$15.5 million, which then surged to HK$49.2 million in 2012.