Fusheng Precision Announces Strategic Acquisition of Proxene Tools via Tender Offer
Fusheng Precision (TWSE: 6670) has announced its intent to acquire a 51% equity stake in the professional hand tool manufacturer Proxene Tools (TPEx: 6904) through a public tender offer. The offer price is set at NT$157 per share, with a plan to acquire 9,435,000 common shares. The total transaction value is estimated at NT$1.481 billion. The tender offer period will run from March 12 to March 31, 2025.
Fusheng Precision: A Global Manufacturing Powerhouse
As a listed company with over 70 years of history, Fusheng Precision recorded a revenue of approximately NT$28.3 billion in 2024. Leveraging its core competencies in precision casting, forging, Metal Injection Molding (MIM), and carbon fiber molding—alongside robust production management—the company has become the world’s largest golf equipment OEM. In recent years, the company has utilized its industry prestige and financial resources to expand into sports equipment, aerospace, and automotive sectors through strategic M&A, generating significant synergies and diversified growth momentum.
Proxene Tools: A Leader in Industrial-Grade Hand Tools
Proxene Tools, an over-the-counter (TPEx) listed company with over 40 years of history, recorded a revenue of approximately NT$900 million in 2024. It is the largest industrial-grade adjustable wrench manufacturer in Asia and ranks among the top three globally. Its clientele includes renowned brands from the US, Europe, and Japan, with applications spanning plumbing, machinery, infrastructure, automotive, and aerospace. As a high-margin ODM with strong R&D capabilities, Proxene is a rare example of a publicly traded hand tool specialist in Taiwan. Its founding family remains the core of the management team, highly respected for their extensive industry experience and successful implementation of automation and product development.
Addressing Industry Challenges through Synergy
Taiwan’s hand tool industry produces over NT$100 billion annually, making it one of the top three exporters globally, with the world’s highest market share in mid-to-high-end tools. While many players are “hidden champions,” they face challenges such as competition from China, geopolitical shifts, and rising labor costs. These hurdles require overseas expansion and automation—tasks difficult for individual SMEs with limited resources. Fusheng Precision, which already produces small quantities of high-end hand tools, has long explored strategic alliances in this sector.
A Strategic Alliance for Global Competitiveness
The founding family of Proxene Tools recognized the need for a large-scale metal forming partner to navigate future industry difficulties. Fusheng Precision fits this role perfectly, with decades of mass production experience and a global footprint across Taiwan, China, Vietnam, Thailand, and the US, employing 20,000 people.
Through this cross-industry merger, Fusheng Precision officially enters the hand tool sector. Both companies share a corporate culture of “Seeking Truth from Facts and Continuous Improvement.” By combining Fusheng’s financial strength and multinational management with Proxene’s industry expertise and professional networks, the alliance aims to integrate customers and suppliers. This partnership is expected to strengthen international competitiveness and establish a powerful new growth platform for Fusheng Precision.
