(Yicai) Dec. 20 -- Shares of GreatStar Industrial advanced after the Chinese maker of electric hand tools said it plans to acquire Tesa Group, a Swiss high-precision measuring instrument manufacturer, for EUR40 million (USD43.9 million) to make a foray into the robotics parts processing machinery industry.

GreatStar [SHE: 002444] rose 1.4 percent to CNY22.99 (USD3.24) as of 11.00 a.m. in Shenzhen today, after opening up 3.6 percent. The broader Shenzhen Component Index fell 0.4 percent.

GreatStar will purchase all of Tesa’s assets owned by Swedish information technology solutions provider Hexagon Smart Solutions, including all equities in Tesa Precision Measurement Instruments, which is specially established for the acquisition, and Tesa’s assets in China, France, and the United States, the Hangzhou-based buyer announced late yesterday.

The funds for the acquisition will be taken from the proceeds of GreatStar’s issuance of global depository shares on the Six Swiss Exchange in November last year, the firm added. GreatStar raised USD154 million after deducting fees from the issuance of GDRs.

With the acquisition of Tesa, GreatStar aims to tap into the micron-level high-precision measuring instrument market segment to improve its existing product portfolio, increase the number of its industrial customers, and develop more Tesa-branded high-precision measurement tools suitable for Chinese clients, GreatStar noted.

Micron-level high-precision measuring instruments are essential tools for processing robotics parts and components.

Founded in 1941, Tesa is one the world’s top two manufacturers of micron-level high-precision measurement instruments. The company’s products are known to production workers and engineers worldwide for their extremely high precision and reliability. It established a complete protection system for its technologies and patents and wide and deep collaborations with major international resellers.

Editor: Futura Costaglione