On July 5, 2022, Impro Group and Danfoss signed an acquisition agreement. According to the agreement, Impro Fluid Technology Co., Ltd. (“Impro Fluid Technology”), a wholly-owned subsidiary of Impro Group, intends to acquire a purchase price of EUR 65 million. Acquired the hydraulic orbital motor business (the “Target Business”) of Danfoss Power Solutions (Jiangsu) Co., Ltd. (“Danfoss Jiangsu”) for the total consideration. Upon completion of the acquisition, the target business will be wholly owned by Impro Fluid Technology and will be consolidated into the Group’s financial statements.
According to data released by the International Statistical Commission, as of December 31, 2020, the market size of the global hydraulic market reached 29.9 billion euros, of which the estimated market size of the global hydraulic orbital motor was 400 million to 700 million euros. Thanks to the rapid growth of the aerial work platform market, one of the important end markets for hydraulic cycloidal motors, China’s hydraulic cycloidal motor market has outperformed the rest of the world. With the increasing demand of Chinese enterprises for labor cost control, the gradual strengthening of safety requirements for aerial work in China, and the maturity of the aerial work platform equipment leasing industry, aerial work platforms are widely used in China, and China’s hydraulic orbital motor market has potential for growth will be continuously released.
The target business is the leader in China’s hydraulic cycloid motor market, and the hydraulic industry has always been one of Impro’s future strategic development directions. The acquisition of the target business is an important measure of Impro’s growth strategy and an important opportunity to achieve sustainable and diversified development. Impro believes that upon completion of the acquisition, the target business will have comprehensive strategic and operational synergies with the Group’s existing global footprint, manufacturing capabilities and customer relationships. With Impro’s global sales offices in the United States and Europe, manufacturing capabilities in China, Turkey and Mexico, as well as solid business partnerships with major OEMs around the world, Impro believes that with the future of the target business, product expansion, global The target business will bring strong growth potential to the Group’s future business development and innovation capabilities due to its layout, R&D investment, and in-depth development of industry applications.
Mr. Lu Ruibo, Chairman and Chief Executive Officer of Impro, said: “The Group announced the signing of the acquisition of Beibei Seiki and Foshan Meijin in April and June this year, respectively. We are constantly improving the Group’s global strategic layout in the hydraulic and aviation terminal markets, and effectively Unlock the synergistic value between the Group and each business. I believe this acquisition will benefit the Group’s long-term business development and will further consolidate the Group’s market position in these two end markets. In the future, we will continue to invest heavily to consolidate our technological leadership , and continue to introduce new solutions to provide customers with more comprehensive services. In addition, during the transition period after the completion of the transaction, the group will work closely with Danfoss to ensure a smooth transition, maintain business management, staff stability, on-time delivery and Product quality remains the same and better serve customers around the world.”