‘This is a great deal for a manufacturer and we will keep investing’ – Industrial Equipment Group

Industrial Equipment and Equipment Manufacturing (I&E) Group (EIMG) said on Tuesday it has agreed to buy its long-time rival Reko Industrial Equipment, marking a move to expand its business.

The acquisition, which is expected to close in the first quarter of 2020, will see Reko acquire its global business, which includes industrial machinery, as well as equipment for industrial manufacturing.

Reko has been in operation since 1974, but is currently being spun out of its parent company, IndustriALL.

The move follows a series of high-profile acquisitions over the past year.

Last year, the US tech giant Lenovo agreed to sell its laptop business to Chinese firm Tencent for $2.5bn.

The acquisition of its mobile computing unit, Zune, by Microsoft in 2015 saw the acquisition of the smartphone business from HTC, which had been bought by Microsoft.

In February, IBM and Dell announced they were forming a partnership to buy the semiconductor giant ARM for $14bn.

More recently, Apple took the first step towards selling its Mac business to Lenovo for $3.7bn.

Apple’s acquisition of Reko came after a series that have seen IBM, Microsoft and Google announce they were making acquisitions to expand their digital products businesses.

Reko was spun out in 2007 and merged with Industriall in 2019.

The merged company had a turnover of about $1.7 billion in the year to June, according to the latest available data from I&E Group.

IndustriALL, which also owns parts manufacturer Reebok, was formed in 1984 to create a more profitable business for the country’s manufacturing sector.

It was spun off into IndustriGroup in 2001.

I&G Group owns factories and suppliers in more than 140 countries and has an annual turnover of $6.3 billion.

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