Electronic components manufacturer Darfon (8163) announced today that its interim board of directors approved a strategic cooperation project with Germany’s GROFA Action Sports GmbH (GROFA). The deal, valued at no more than 37 million euros, involves Darfon acquiring 100% equity of GROFA in two installments. This acquisition aims to establish Darfon’s new business unit for the smart mobility (E-Mobility) channel platform in Europe.
Darfon’s green energy business, particularly in electric bicycles (E-Bike), has become a significant growth area for the company. Despite this year’s period of inventory reduction, Darfon recently projected a revenue increase of 30-50% in its green energy segment for next year. The company plans to continue developing comprehensive services, including frame, battery, electronic control, intelligent technology, and vehicle design.
GROFA, a specialist in bicycles, E-Bikes, and components, distributes products in Germany, Austria, Belgium, and other regions. It represents 27 high-end sports brands globally, making it a high value-added channel platform provider with robust operational resilience. Darfon believes that collaborating with GROFA will enable the company to quickly establish a European channel business, enter key markets, and enhance overall revenue and profits through synergy.
“This strategic acquisition marks Darfon’s first expansion into Germany, a country known for its vibrant cycling culture,” a Darfon spokesperson said. “It will enable us to effectively implement our green energy business strategy, offer localized sales and service, and create value for our customers, resulting in a win-win situation.”
This acquisition is part of Darfon’s broader strategy to strengthen its presence in the European e-mobility market, leveraging GROFA’s established distribution network and expertise to accelerate growth and innovation in the green energy sector.
