EFTTA MEMBER RAPALA ACQUIRES SUFIX LINE BRAND
Long-standing EFTTA member Rapala VMC Corporation (Rapala) has acquired the renowned Sufix fishing line brand from Yao I Co Ltd - one of the leading manufacturers of fishing line in the world.
Yao I, with offices in Changhua, Taiwan, and fishing line factories in Taiwan and China, has agreed to sell its Sufix brand, including all intangible assets relating to Sufix branded and other fishing line business (excluding manufacturing related), to Rapala.
The companies have also entered into an exclusive supply agreement, whereby Rapala alone will be selling fishing lines manufactured by Yao I, who will be manufacturing fishing line for Rapala only, including subcontracted fishing lines for third party customers (OEM).
Rapala aims to expand its fishing line sales in the next few years to some 25-40 million Euros and gain a significant market share of the global fishing line business. In 2007, the fishing line sales of Rapala were some 7 million Euros.
Rapala CEO, Jorma Kasslin, said: "Through this deal, Rapala enters into the worldwide fishing line category in a meaningful way.
"Yao I will supply Rapala’s global distribution network with a wide selection of fishing lines including monofilament, braided and fluorocarbon lines.
“While Yao I is strong in manufacturing and development of fishing line, Rapala is strong in global marketing and distribution. Therefore, this will be a win-win concept creating an exceptionally strong fishing line business for both companies.
"Rapala’s target is to gain a significant market share from the worldwide fishing line business during the next few years.”
The Sufix brand is very well known around the world but its largest market is currently in the USA. The brand is well represented also in Europe, Asia and Oceania.
As part of the deal, Rapala will acquire the Sufix branded fishing line inventory from Sufix North America, Inc.
Rapala is a leading fishing tackle company and the global market leader in the fishing lures, treble hooks and fishing related knives and tools. The Group also has a strong global position in other fishing categories.
The Group has its own distribution companies in all the main markets and the largest distribution network in the industry. With net sales of 242 million Euros in 2007, Rapala employs more than 4,000 people in 30 countries.