Rapala VMC Corporation sold the group’s entire injection molding business to Finnish mold and injection molding parts manufacturer Muottituote Group Oy on December 22, 2023. With the transaction, Muottituote Group Oy acquired Rapala VMC Corporation’s subsidiary KL-Teho Oy’s real estate located in Korpilahti, Finland, along with the injection molding operations, equipment and employees.
“The completed transaction is part of Rapala’s strategy to focus on core business and release capital,” said CEO Lars Ollberg. “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.”
Tuomas Akkanen, EVP and head of Group Supply Chain and a Rapala VMC Corporation global management team member added, “Rapala wants its own factories to focus on the production of finished products and acquire components from contract manufacturers. Muottituote Group can focus on developing quality and efficiency in its area of expertise, better than us.”
Ollberg stated that approximately 20 employees would transfer to Muottituote Group as existing employees as part of the business transaction. The factory’s operations will continue without interruption, maintaining the same functions. Ollberg noted that the transaction has no impact on the ice drill manufacturing of KL-Teho Oy.
Image courtesy Rapala
