Japanese barcode printing, labelling, and RFID solution major SATO took a majority stake in Russia-based label manufacturer Okil-Holding, JSC, a move which will strengthen its position in the BRIC region.
Acquiring approximately 75% of all shares issued, Okil will now operate as a subsidiary within the SATO Group. Terms of the deal were not disclosed.
SATO has been eyeing Russian market as it recorded double digit growth since the late 2000s, with an average annual growth rate of 13% from 2009 to 2013, and is further projected to grow.
SATO currently provides integrated Automatic Identification and Data Collection solutions that leverage barcode, two-dimensional stacked & QR code, colour code, digital watermarking, and UHF/HF/PJM RFID technologies.
Commenting on the deal, SATO Holdings president and CEO Kaz Matsuyama said: "Okil is recognised as a local market leader and fits perfectly into SATO's strategic roadmap.
"Our mid-term strategy is focused on achieving sustainable growth, while maximising value for customers across the globe. This acquisition allows us to further solidify that strategy, establishing a foothold in Russia and strengthening our network within BRICS markets, which offer tremendous growth opportunity."
Headquartered in Saint Petersburg, Okil specialises in value-added product labels for the food and beverage, beauty and healthcare industries, and boasts a large customer base comprising local companies and a variety of major multinational corporations.
With around 15% market share in Russian label market, Okil generated $54.5m in sales in financial year 2013.
Okil founder and CEO Denis Okulov said: "We are excited to be moving into 2015 with SATO.
"Being part of the SATO Group will connect Okil to a wider global network, and allow us to deliver greater value to local customers through SATO's diverse range of solutions."
The transaction was completed on December 19, 2014.
Image: SATO's president Kaz Matsuyama is banking on Russian market for growth. Photo courtsey of SATO.
