Global Brands Manufacture Ltd. (Stock Code: 6191, hereafter referred to as "GBM") announced on December 26, 2024, that it will acquire 100% of the shares of Japanese PCB manufacturer Lincstech Co., Ltd. for ¥39.7 billion, from the fifth fund managed by Polaris Capital Group Co., Ltd. This move aims to strengthen GBM's technological capabilities and market competitiveness, while further expanding its presence in Southeast Asia and global markets. The transaction is expected to be completed by April 1, 2025, pending approval and review by relevant authorities.
Purpose of M&A
Founded in Taiwan, GBM primarily engages in the production of PCBs (Printed Circuit Boards) and EMS (Electronics Manufacturing Services). Since its establishment, GBM has continuously expanded in the global market, particularly in China, Japan, and Malaysia, where it has established multiple manufacturing bases. The company mainly provides high-quality PCB products and services for 3C communication products, automotive electronics, PCs, and notebooks. Since 2018, GBM has actively pursued acquisitions, successfully integrating several companies and enhancing its competitive advantage in the global market.
The primary objective of GBM's acquisition of Lincstech is to strengthen its technological expertise in high-end PCB manufacturing and expand its influence in Southeast Asia and global markets. Lincstech's technology and market position in the high-end PCB sector will provide significant synergies for GBM. Expected outcomes include:
1. Expansion of Product Line: GBM will leverage Lincstech's advanced technology to further expand its product offerings, especially in areas such as AI servers, automotive electronics, semiconductor testing, and high-density circuit boards.
2. Technological Upgrades: Lincstech's advanced manufacturing technologies will enhance GBM's market competitiveness and increase its global market share.
3. Strengthened Southeast Asia Presence: Lincstech's manufacturing base in Singapore will further strengthen GBM's position in the Southeast Asian market, addressing the growing global demand.
4. Japanese Market Integration: Through Lincstech's factories in Japan, GBM will enhance its integration in the Japanese market and further expand its market share.
2. Technological Upgrades: Lincstech's advanced manufacturing technologies will enhance GBM's market competitiveness and increase its global market share.
3. Strengthened Southeast Asia Presence: Lincstech's manufacturing base in Singapore will further strengthen GBM's position in the Southeast Asian market, addressing the growing global demand.
4. Japanese Market Integration: Through Lincstech's factories in Japan, GBM will enhance its integration in the Japanese market and further expand its market share.
This acquisition by GBM will help strengthen its technological capabilities in the global market and further expand its market presence in regions like Southeast Asia and Japan. This strategic acquisition will not only improve GBM's competitiveness but also lay a solid foundation for the company's future growth.
Acquisition Terms
The transaction value for this acquisition is ¥39.7 billion. GBM will acquire 100% of Lincstech's shares, with price adjustments according to the contract. The transaction must be reviewed and approved by the relevant authorities before it can be officially completed, with the transaction expected to close by April 1, 2025.
Schedule
December 26, 2024: GBM's Board of Directors passed the formal agreement for the acquisition of Lincstech.
April 1, 2025: The transaction is expected to be completed, contingent upon all necessary approvals and reviews from the relevant authorities.
Acquisition Terms
The transaction value for this acquisition is ¥39.7 billion. GBM will acquire 100% of Lincstech's shares, with price adjustments according to the contract. The transaction must be reviewed and approved by the relevant authorities before it can be officially completed, with the transaction expected to close by April 1, 2025.
Schedule
December 26, 2024: GBM's Board of Directors passed the formal agreement for the acquisition of Lincstech.
April 1, 2025: The transaction is expected to be completed, contingent upon all necessary approvals and reviews from the relevant authorities.
