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).
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 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.
Cybex believes its global position will be boosted by access to Asia, especially China.
Goodbaby will also be able to further develop its car safety business.
"Not only will [this acquisition] extend our product portfolio into premium car safety seats and reinforce our footing in Europe, we believe we can leverage greatly on Cybex's unique and extensive experience in branding and marking," said Song Zhenghuan, chairman and chief executive of Goodbaby.
