CHINA: SHANGGONG ACQUIRES MAJORITY SHARE IN RICHPEACE
China-based ShangGong Group ( SGSB) recently acquired 65 per cent stake in Tianjin Richpeace Computer & Machinery Co. Ltd., which is a pioneer in providing technologies to apparel and textile industry. The acquisition was announced on the occasion of
12th anniversary celebration of Richpeace in Baodi district of China, by SGSB Chairman and President Zhang
Min along with Richpeace General Manager Li JinNing.
SGSB is a leading group engaged in production and sales of industrial sewing machinery and owns wellknown global high- end sewing technology brands including Duerkopp Adler, PFAFF, KSL, as well as widelyknown domestic brands like ShangGong and Gemsy.
The total investment of SGSB in the acquisition stands at US $ 23 million which includes US $ 20 million for equity acquisition and approximately US $ 3 million for capital increase.
At present, Shenzhen Ying Ning Venture Capital Co. Ltd. holds 60 per cent equity of Richpeace, while the remaining 40 per cent is shared by Tianjin Tong Shang Software Co., Ltd.
The merger aims at the expansion of businesses of both the firms and, according to ShangGong Group, its customers will now find nearly all machinery of the textile value chain under one roof. Richpeace, a renowned name internationally for its high automatic product line, has a diversified and vast product portfolio which includes: CNC controlled sewing machines, computerised embroidery machines, laser cutters, quilting machines, textile printing machines, ironing machines, as well as CAD/ CAM software and electronic controls.
Located in the Tianjin Baodi Economic Development Zone near Beijing in China, Richpeace majorly caters to six manufacturing industries: apparel, home textiles, furniture, automotive, technical textiles and aerospace. With more than 300 patents and 30 software copyrights, Richpeace is one of the technology leaders of the textile machine sector in China.
Furthermore, the acquisition will also give potential to the Germanybased Duerkopp Adler Group (which was also acquired by SGSB recently) to offer complete industry 4.0 solutions.
“Production progress from digital textile printing through cutting to sewing can be monitored now and steered by our digitised machine network systems,” said Dietrich Eickhoff, Chairman of the Board of Duerkopp Adler AG, stating that SGSB will be able to see large perspectives and synergy for the future by this merger.