Shufu Li, Chairman of Geely (left)

Jiangsheng Gu, Chairman of KUKA Home (right)

Hüls lost another pearl after Parador and RUF.

Rolf Benz AG & Co.K, the most famous furniture brand in Germany, is one of the world’s renowned furniture brands in the world and enjoys very high reputation in Europe. Established in 1964, it mainly engages in designing, producing and selling soft furniture. It has three brands, which cover consumers with different consumption power and styles. Furthermore, its sales account for 80% of European markets. In 2017, this company earned €77,650,000 and its net profits amounted to €2,885,000; it cost €41,560,000 in acquisition, and its PE was 14 times higher in 2017.

Its brands include “Rolf Benz”, “hülsta sofa” and “freistill”, aiming at consumers with varying consumption power and styles.Its over 80% sales are from European markets. All its sofas are produced by its own target factories in Nagold, Germany. As a top German sofa brand, the company is famous for its quality, functions and designs. So far, Rolf Benz has become a byword of top luxury sofa brand. In people’s opinions, Rolf Benz is a symbol of classical designs. With a good sense of sitting, it is durable.

Factory of German ROLF BENZ

Globalization under macroscopic home strategies

KUKA Home, a leading brand of the domestic home industry, has accumulated good word-of-mouth over many years. This M&A laid a solid foundation for layout of the big home industry and imposed far-reaching impacts upon it. If this transaction is smooth, Rolf Benz will become a part of KUKA and be included in its statements (expected to be completed in the fourth quarter) as a subsidiary shareholder. Believe that its German qualities are favorable for enhancing research and development strength of the company. Meanwhile, they are helpful for improving internationalized layout of KUKA Home, enhancing its brand image, diversifying its products and improving its brand layout.

Meanwhile, KUKA will speed up its M&A. Since this year, KUKA’s firm determination in capital operations has been fully manifested. According to its M&A strategies for strengthening its core principal businesses, distributing its lifestyles, developing creative business formats, keeping a foothold based on medium/high-end customers’ M&A strategies and facilitating its M&A, KUKA entered into a cooperation framework agreement with Natuzzi (top brand of soft furniture in Italy) in early January to diversify its products and expand its markets. In mid February, KUKA Home purchased shares of Easyhome with RMB0.198 billion to deepen its layout at the C-terminal and share its earnings from IPO.

We believe that above mergers and acquisitions are only a corner of KUKA’s iceberg for M&A.

KUKA Building