Globe Union Industrial Corporation Increases Manufacturing Capabilities with Acquisition of North American Vitreous China Manufacturer.
The Board of Globe Union Industrial Corp. has approved an overseas investment on Aug, 28th, 2019. The investment will be made through the asset purchase acquisition from one of the highly sought Mexican Vitreous China Manufacturer, NAMCE S. DE R.L. DE C. V.
Globe Union will acquire its machinery, equipment and inventory. The total consideration of this investment at US$60 million; after signing the Asset Purchase Agreement and gaining the Ministry of Economic Affair’s approval, the first installment ($40m) will be made in late 2019; the remaining balance will be made in the following four years ($5m respectively) from the date of close.
After the acquisition, it is expected that Globe Union will nearly double its manufacturing capacity to support Gerber brand’s development strategy in North America whilst reducing the lead-time by establishing manufacturing closer to its core market. Ultimately we can build upon our brand strategy and elevate the Gerber brand position. Gerber already have great reputation in the plumbing wholesale channel, the additional capacity we will now allow us to further diversify into other segments of the market.