Thu, Feb 21, 2019 - Page 12 News List

Darfon Electronics to buy stake in Kenstone Metal

GREEN BUSINESS:The acquisition would help Darfon build an extensive supply chain in the electric bicycle sector and secure more orders, the firm said

By Lisa Wang  /  Staff reporter

Darfon Electronics Corp (達方電子), a local supplier of PC peripherals and passive components, yesterday said it plans to acquire a 60 percent stake in Kenstone Metal Co Ltd (世同金屬) for NT$720 million (US$23.36 million) in an effort to build a bigger presence in the global electric bicycle market.

The purchase would be the second merger and acquisition deal unveiled by Darfon in the past six months, after the company in October last year announced a NT$960 million deal to buy a 60 percent stake in passive component supplier Unictron Technologies Corp (詠業科技) to expand product portfolios and spur revenue growth.

Over the past four decades, Kenstone has assembled premium bicycles for other brands at factories in Taiwan and Germany, the Central News Agency (CNA) reported, citing information from Darfon.

Kenstone has a long customer list, with clients in North America and Europe, the company said.

Darfon has for the past few years diversified into the green energy market by supplying key components such as battery packs for electric bicycles, but the move has not achieved significant growth.

The acquisition would help Darfon build an extensive supply chain in the electric bicycle sector and secure more orders, giving it an advantage over its rivals, the company said.

The deal would also help boost the revenue contribution from Darfon’s green energy division, it said.

The green energy division accounts for about 8 percent of its total revenue, it said.

Darfon last year sold 2.1 million electric bicycles in the US and Europe, the CNA reported, citing an unspecific report, adding that sales are expected to reach 3.8 million units by 2025.

This story has been viewed 1853 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top