China’s consumer appliances maker Midea Group Co Ltd has acquired Israeli motion control and automation systems company Servotronix Motion Control Ltd for a company value of $170 milion.
Servotronix’ development center in Petah Tikva will however continue to operate after the acquisition, even after the strategic cooperation with Shenzen stock exchange-listed Midea Group, according to a report from Israel’s Globe this Sunday.
In fact, last week Midea entered a strategic partnership with Servotronix for synergies with Midea in terms of value chain integration and new market development.
“This strategic alliance represents another milestone of Midea’s expansion in industrial automation and intelligent manufacturing. We believe that Servotronix’ technological leadership and innovation in motion control will generate significant synergies with Midea in terms of value chain integration and new market development,” said Chairman and CEO of Midea Paul Fang in the statement issued last week.
By leveraging each other’s complementary capabilities and resources, the two companies will join forces to develop exciting new products and explore growth opportunities going forward, Fang had said in the statement.
“This alliance will provide Servotronix with significant leverage for our global operations and put Servotronix in a leadership position in the field of robotics, control and automation, with China being a major market in this field,” said President, CEO and Founder of Servotronix Ilan Cohen.
focuses on household goods, air-conditioning, robotics and automation and is also a global supplier of the consumer appliances
Midea has identified robotics and automation as an important growth market and is stepping up its involvement, among others with the recent acquisition of the German company KUKA, one of the largest robot manufacturers in the world for $5 billion last month.