On December 24, Yestar Technology announced that it plans to increase its capital by US$50 million from its wholly-owned subsidiary, US Yestar, to acquire Shop-Vac, a well-known brand of vacuum cleaners in North America and related assets, at a transaction price of US$41.86 million.
Shop-Vac is a well-known brand and manufacturer in the North American vacuum cleaner field founded in 1965. Its main products include wet and dry vacuum cleaners and accessories for consumer and commercial purposes, car vacuum cleaners, etc. Shop-Vac is available in the United States, China, and Vietnam. There are manufacturing bases in other places with nearly 500 patents. The main customers include Walmart, Amazon, Lowe’s and other Fortune 500 companies.
Shop-Vac is one of the most popular vacuum cleaner brands in North America. It has advanced motor technology and excellent research and development capabilities, and its sales have exceeded 200 million U.S. dollars for three consecutive years.
The management of Yexing Technology said: The acquisition of the Shop-Vac brand is the beginning of Yexing’s full entry into the power tool market. On the one hand, the company will broaden the global sales channels of the Shop-Vac brand, and on the other hand, it will further improve the local service in North America with the help of Shop-Vac’s US production and warehousing capabilities. After the completion of the merger, we will accelerate the introduction of Shop-Vac’s advanced talents and manufacturing technology, plan to invest in the construction of a global advanced future factory in China, and accelerate the deployment of a new system of “Chinese design + Chinese and foreign manufacturing + global sales”.
As a leader in the global hand tool industry, Yestar Technology has been continuously enriching product categories and accelerating the increase in international competitiveness and market share. The market scale of the power tool industry is larger than that of the hand tool industry. The two completely overlap in sales channels and end customers, and the price of single products of power tools is high, and the industry concentration is relatively high. Since 2019, the company has been trying to enter the field of power tools and establish its own brand of power tools. It has also gained some share of the power tool market through cross-border e-commerce and small hand-held specialty products.
Wet and dry vacuum cleaners are an important product category in the field of power tools in Europe and America, and the Shop-Vac brand is a well-known brand in the field of vacuum cleaners in North America. Through this acquisition, the company will quickly enter the North American vacuum cleaner market and accelerate its deployment in the hundreds of billions of electric tools market. In the future, the company will continue to expand the company’s power tool business and enhance the company’s comprehensive competitiveness through independent research and development and extended acquisitions.