Roto remains in purchasing mode

Roto makes an acquisition in China / Takeover of Union Ltd, a hardware supplier with 450 employees

Roto Frank AG aims to further secure the expansion course of its window and door technology division with its next corporate acquisition.

The acquisition of Union Ltd., a manufacturer based south of Shanghai, will help to ensure this, reports the international construction supplier.

The takeover that is expected to come into effect within the next three months will strengthen the essential manufacturing expertise related to products in the growth markets. The new group member is an “established provider” of components and semi-finished parts for window and door hardware.

The purchase of the previously family owned specialist company is based on a long-established business relationship according to Dr. Eckhard Keill. Union has been operating as a supplier of zinc and aluminium die-cast parts for many year according to Roto's chairman of the board of directors.

The wide technological range of the acquired company with its approx. 450 employees proves to be important parameters. The range includes, for example, powder coating as well as various die-casting and injection moulding processes.

Both parties agreed not to disclose the purchase price. Irrespective of this, the chief financial officer Michael Stangier stresses that “the sustained strong financial position easily enables the realisation of this acquisition“.

This once again demonstrates the economic stability of the Roto Group, that achieved a turnover of € 622 million in 2016 with around 4,500 employees according to its own reports.

It clearly shows that this plays an increasingly important role for customers in Germany and abroad when choosing their industrial partners.

The management responsibility for Union will transfer to Roto in the short term. However, the company will continue as an independent business in the future and will not be integrated into the group.

According to Dr. Keill, the decision is based on “respect for existing customers of our new subsidiary”, some of which are competitors of the construction supplier. The Chinese manufacturer should and will continue to be a “reliable partner” for them.

Overall, the Roto boss describes the current investment as the “next step of an offensive strategy that is fully focused on meeting market and customer requirements all over the world”. Besides, success requires a consistent commitment to free trade instead of isolation.