Rapala VMC Corp. has sold its entire injection molding business to a Finnish mold and injection molded parts manufacturer, Muottituote Group Oy, with an agreement signed Dec. 22, 2023. With the transaction, Muottituote Group Oy acquires Rapala VMC Corp.’s subsidiary KL-Teho Oy’s real estate located in Korpilahti, Finland, along with the injection molding operations, equipment, and personnel.
“The completed transaction is part of Rapala’s strategy to focus on core business and release capital,” said Lars Ollberg, Rapala VMC Corp.’s CEO. “Rapala has been collaborating with Muottituote Group for decades, and with this deal, the collaboration is further intensified. We have entered into a multi-year procurement agreement with Muottituote Group, ensuring timely deliveries of components to the Rapala VMC Group. This supports the new One More Turn strategy, aimed at accelerating inventory turnover and improving cash flow.”
“Rapala wants its own factories to focus on the production of finished products and acquire components from contract manufacturers,” said Tuomas Akkanen, a member of Rapala VMC Corp.’s global management team and executive vice president. “Muottituote Group can focus on developing quality and efficiency in its area of expertise, better than us.”
As part of the business transaction, approximately 20 employees will transfer to Muottituote Group as existing employees. The factory’s operations will continue without interruption, maintaining the same functions as before. The transaction has no impact on the ice drill manufacturing of KL-Teho Oy.