TYM Completes Acquisition of Kukje Machinery Corp.
TYM, one of South Korea's leading agricultural machinery companies, announced on last August 4 that it has acquired 72.9% stake in international general machinery from SPC (Special Purpose Company) KAM Holdings. Its acquisition shares are 8.9 million shares, and its acquisition amount is about 55.8 billion won.
Before the acquisition, TYM invested in Kukje Machinery CORPORATION through KAM Holdings, a special purpose company established with Uam Coquiston First Company Financial Stability Private Investment Joint Company (PEF) in 2016. It has indirectly owned 27.1% (KRW 16 billion). By directly acquiring all of the remaining additional shares, Kukje Machinery CORPORATION has been incorporated into 100% of its subsidiaries for the first time in about five years.
Since its establishment in 1968, Kukje Machinery CORPORATION has been producing tractorsand diesel engines. Overseas sales have increased significantly due to increased demand for small agricultural machinery in the U.S. since the global pandemic.
In particular, Branson, a North American corporation of Kukje Machinery CORPORATION was selected as the top-ranking tractor in 2021 by the North American Agricultural Machinery Dealers Association (EDA). In line with the recent demand for tractors in North America, annual production has also increased from 10,000 to 20,000 units.
The combined annual sales of the two companies are expected to reach 1 trillion won. TYM plans to find and secure new growth engines through cooperation in overseas markets as well as expand the appearance of the domestic agricultural machinery market through the acquisition of international general machinery.
"As of the first half of this year, TYM USA and Branson's sales in North America rose 89% year-on-year respectively. TYM USA and Branson will expand their market share in the U.S. through an integrated strategy that leads to purchase-sales network-marketing." It also plans to diversify its exports by sharing distribution networks in major countries as well as North America to expand more markets in more than 40 countries including the Middle East, Southeast Asia, and Africa.
Along with Kukje Machinery CORPORATION combined synergy between the two companies will be promoted in earnest in various areas such as technology, productivity, price competitiveness, financial structure, and brand power. First of all, through the integrated operation of R&D (R&D) and production lines of Kukje Machinery CORPORATION is planning to introduce products with differentiated future-leading technologies and increase price competitiveness by using its own production capabilities.
"Kukje Machinery CORPORATION's status and reputation are recognized more in North America than in Korea," said Kim Do-hoon, CEO of TYM. "The combined synergy between the two companies will not only increase their appearance but also become a top brand that leads the global agricultural machinery market."
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