(Yicai Global) April 6 -- Chinese tool supplier Great Star Industrial aims to become the world’s biggest storage cabinet designer and producer by buying Geelong Holdings for USD131.4 million.

Through the all-cash deal, Great Star targets at least 10 percent of the global market for storage cabinets in the next three to five years, the Hangzhou-based company said in a statement today. The acquisition is subject to regulatory approval.

The announcement comes a week after Great Star said it would spend EUR27.9 million (USD33 million) to acquire the assets of insolvent German competitor Joh Friedrich Behrens with the aim of becoming the world’s main supplier of pneumatic nailers and related consumables. 

Shares of Great Star [SHE:002444] closed up 1.7 percent today at CNY34.71 (USD5.30) each, while the broader Shenzhen Component Index fell 0.3 percent.

Cayman Islands-based Geelong, which makes toolboxes, tool trolleys and a wide variety of industrial and home storage products, expects to have revenue of at least HKD1.5 billion (USD193 million) this year after earnings sank in 2020 amid the pandemic. In 2019, it made a HKD149 million (USD19.2 million) profit on HKD1.4 billion in revenue.

Editor: Tom Litting