Lincoln Electric Holdings last week announced that its Asian subsidiary, The Lincoln Electric Co. Pte., Ltd., has acquired 100-percent control of Jinzhou Jin Tai Welding and Metal Co., Ltd., a welding wire business in Jinzhou, China. Lincoln Asia Pacific had owned 48 percent of Jin Tai, and the remaining 52 percent was held by Taiwan-based Kuang Tai Metal Industrial Co., Ltd. and other partners. Jin Tai’s annualized sales for the first half of 2009 were approximately $130 million.
“We are pleased to announce the acquisition of Jin Tai, which starts a new phase in the development of our business in China,” said John Stropki, chairman and CEO. “Jin Tai will greatly expand our customer base, bring experienced industry management talent into our Asian organization and add significant cost-competitive MIG wire manufacturing capacity. In addition, completing this acquisition allows us to focus our resources on growing our position in China, the largest welding market in the world in terms of volumes.
“We look forward to an ongoing cooperative relationship with Chou Tai Long, Kuang Tai’s chairman, as Kuang Tai is an important global supplier and a key customer for Lincoln’s products.”
Lincoln Asia Pacific acquired Jin Tai by exchanging its 35-percent ownership interest in Kuang Tai, paying cash of approximately $39 million and assuming net debt of approximately $10 million. The purchase price is subject to final post-closing adjustments.
Cleveland-based Lincoln Electric is the world leader in the design, development and manufacture of arc welding products, robotic arc-welding systems, plasma and oxyfuel cutting equipment and has a leading global position in the brazing and soldering alloys market.