Synergies in motion: LOGICDATA to be Acquired by Jiecang
May 28th, 2021
Deutschlandsberg, May 28, 2021
We live in an increasingly-globalized world, and the adjustable furniture industry is no exception to that rule. With ever-increasing competition on the market, big decisions must be taken, and creative solutions must be found to continue on the path of growth in a hugely-competitive corporate environment.
It is for this reason that we are pleased to announce the agreement of a merger between LOGICDATA and Jiecang.
Naturally, neither Jiecang or LOGICDATA were in a position to discuss details of the potential merger publicly until this point. We are, of course, aware that many people with an interest in our company — be that our customers, suppliers, or stakeholders in the local community — will have questions regarding the transaction and the future prospects for LOGICDATA.
As such, this blog post will explain the background to this news, expand on the details of the arrangement, and outline the future plans for both the Jiecang and LOGICDATA brands.
Your Questions, Answered.
Who is Jiecang?
Jiecang, like LOGICDATA, is a supplier of components for home and office furniture. Founded in the year 2000, the company is listed on the Shanghai stock exchange and currently operates from production and R&D bases across Asia, Europe and North America.
With more than 2000 employees around the world, Jiecang see the acquisition of LOGICDATA as a logical step in their ambitious plans for global expansion. Renchang Hu, founder and chairman of Jiecang, is optimistic about the shared future of the two brands:
“Through the acquisition of LOGICDATA, we are adding an outstanding team with great innovation power, a valuable long-standing customer base in Europe and the US, and a high-performance, premium product portfolio. I would like to welcome the entire LOGICDATA team, as well as all LOGICDATA customers, warmly to our group. I´m looking forward to a great joint future of prosperous growth, with a strong focus on fulfilling customer needs in a fast-expanding industry”
Why has Jiecang acquired LOGICDATA?
Jiecang and LOGICDATA have long-standing shared interests. The two companies previously competed with one another for market share and components, but a single company is better-placed to achieve efficiencies in manufacturing and R&D. The merger is intended to allow the brands to complement one another, creating a leading global one-stop-shop for linear motion components and complete mechatronic systems. With estimated annual revenues of 350 million USD and more than 2500 employees worldwide, the group now finds itself in a strong position to grow. LOGICDATA and Jiecang will combine innovation power, work together towards cost-efficient manufacturing, and establish a strong global presence with a focus on customer satisfaction, profitability, and financial strength. The group expects to accelerate innovation and profitable growth in the coming years.
What are the terms of the agreement?
According to the terms of the agreement, Jiecang will acquire 100% of the shares of LOGICDATA, subject to pending regulatory approvals. These are expected to conclude within the next 3-6 weeks. Once the takeover has been finalized, Jiecang will invest 20 M€ into LOGICDATA´s product innovation and future growth.
What’s next for LOGICDATA?
LOGICDATA will continue to operate and grow as a separate company, under the Jiecang umbrella. Our 270 employees will continue their excellent work towards maintaining our premium, innovative brand, product portfolio, and long-lasting customer relations. Furthermore, the company will be able to access significant manufacturing and sourcing synergies within the Jiecang group. Walter Koch, founder, majority shareholder and CEO of LOGICDATA, feels that the deal represents the best possible outcome for all parties.
“We are happy. By merging with a highly-industrialized and financially strong partner, we will be able to accelerate our growth while remaining innovative and customer-centric. The combined competencies of both Jiecang and LOGICDATA mean that our global customers can look forward to even more innovative and cost-competitive products in the coming years”
Embracing the Change.
Since our founding in 1994, our customers, suppliers and employees have grown familiar with the LOGICDATA brand and our values of community, fairness and respect. While the acquisition marks a great change in our ownership and our establishment as a truly global organization, we would like to reiterate our commitment to everyone involved in the LOGICDATA family and assure you that these values remain unchanged. The acquisition by Jiecang represents the best deal for everyone involved with the company, and we are hugely optimistic about our shared future: both with Jiecang and our existing network of customers and suppliers.
For more information please contact:
Johannes Gradwohl, VP Corporate Services & Projects
+43 650 5354769, email@example.com
LOGICDATA Electronic & Software Entwicklungs Gmbh
Wirtschaftspark 18, A-8530 Deutschlandsberg, Austria
Tao Hu, Marketing Manager
+86 18367570436, firstname.lastname@example.org
Zhejiang Jiecang Linear Motion Technology Co.,Ltd.
Provincial High Tech Park, Xinchang city, Zhejiang Province, China