PRESS RELEASE, January 2, 2024
Rapala VMC Corporation has sold group's entire injection molding business to a Finnish mold and injection molded parts manufacturer Muottituote Group Oy with an agreement signed on the December 22, 2023. With the transaction, Muottituote Group Oy acquires Rapala VMC Corporation's subsidiary KL-Teho Oy's real estate located in Korpilahti, Finland, along with the injection molding operations, equipment, and personnel.
"The completed transaction is part of Rapala's strategy to focus on core business and release capital. Rapala has been collaborating with Muottituote Group for decades, and with this deal, the collaboration is further intensified. We have entered into a multi-year procurement agreement with Muottituote Group, ensuring timely deliveries of components to the Rapala VMC Group. This supports the new One More Turn strategy, aimed at accelerating inventory turnover and improving cash flow," says Rapala VMC Corporation's CEO, Lars Ollberg.
Tuomas Akkanen, a member of Rapala VMC Corporation's Global Management Team and Executive Vice President, Head of Group Supply Chain, adds: "Rapala wants its own factories to focus on the production of finished products and acquire components from contract manufacturers. Muottituote Group can focus on developing quality and efficiency in its area of expertise, better than us."
As part of the business transaction, approximately 20 employees will transfer to Muottituote Group as existing employees. The factory's operations will continue without interruption, maintaining the same functions as before. The transaction has no impact on the ice drill manufacturing of KL-Teho Oy.
Rapala VMC Corporation
Lars Ollberg
President and Chief Executive Officer
Additional Information
For additional information, please contact: Tuomo Leino, Investor Relations (tel. +358 9 7562 540)
About Rapala VMC Corporation
Rapala VMC group is the world's leading fishing tackle company and the global market leader in fishing lures, treble hooks and fishing related knives and tools. The group also has a strong global position in other fishing categories and Rapala VMC's distribution network is largest in the fishing industry. The main manufacturing facilities are in Finland, France, Estonia, and the UK. Rapala VMC group's brand portfolio includes the leading brand in the industry, Rapala, and other global brands like VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Marttiini, Peltonen and 13 Fishing as well as Okuma in Europe. The group, with net sales of EUR 274 million in 2022, employs some 1 500 people in approximately 40 countries. Rapala VMC Corporation's share is listed and traded on the Nasdaq Helsinki stock exchange since 1998.
www.rapalavmc.com
