Issued by: FuSheng Precision
Issued on: 2025/03/11
FuSheng Precision (Code: 6670) is planning to acquire a 51% stake in Proxene (Code: 6904) through Tender Offer. The purchase price is NTD 157/share, with plans to acquire 9,435k shares, totaling NTD 1,481.3m. The acquisition period is scheduled from March 12 to March 31, 2025.
FuSheng Precision is a TWSE-listed company with over 70 years of history, generating NTD 28.3b in revenue in 2024. By leveraging its casting, forging, MIM and carbon fiber technologies, as well as strong production management, the company has been the largest golf club head manufacturer in the world. Over the past years, FuSheng Precision has utilized its good reputation and financial resources created by core business, in combination with M&A expertise, to expand into other sectors, including non-golf sports equipment and aerospace/automotive parts. This strategic move has led to good synergies and impressive investment returns, also bringing diverse growth momentum to the company.
Proxene is an OTC-listed company with over 40 years in operation. Seeing revenue of NTD 890m in 2024, it serves as one of the top three makers in the global high-end adjustable wrench market. Major clients include well-known brands in the US, Europe, and Japan, with products applied in the infrastructure, automotive and aerospace industries. Proxene is a profitable ODM company with strong in-house R&D and design capabilities. The founding family also plays a key part of the management team, owning strong domain knowledge, good reputation and experience in this industry.
Taiwan ships over NTD 100b of Hand Tools annually, acting as one of the top three exporters, also the largest producer of high-end models in the world. Most of the Taiwanese Hand Tool companies are small to medium-sized, yet some are considered "hidden champions" in specific areas. Nowadays, the industry has been impacted by price war from Chinese counterparts, geopolitical risk and labor cost issues. As a result, any individual company needs to put offshore factories and automated production into consideration, but trapped by limited resources. So, many have begun to consider how to combine resources to address these issues. FuSheng Precision, with some experience in making high-end Hand Tool, is not unfamiliar with the industry. Several years ago, it also explored the feasibility of strategic alliances with other Hand Tool manufacturers in Taiwan, but the timing was not right, so these discussions did not materialize.
Proxene has a deep understanding of the current and future opportunities and challenges, seeking a larger metal finished-goods processor to join forces. FuSheng Precision has accumulated decades of experience in metal forming, also establishing large-scale mass production capabilities, with operations spanning across Taiwan, China, Hong Kong, Vietnam, Thailand and the US. FuSheng Precision is always counted as a good partner for this collaboration.
In addition, FuSheng Precision will be closely working together with Proxene to develop more partnership opportunities with other Hand Tool companies, for integrating customers, suppliers and production resources. This measure is expected to create another strong growth platform for FuSheng Precision, bringing about a win-win situation for both parties.
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