Rapala VMC is one of the largest fishing tackle manufacturers in the world. The company eclipsed $300 million in sales in 2022 and has a staff of about 1,500 across locations in 40 countries. However, its primary manufacturing operations are overseas, in Finland, France, Estonia and the UK.
Rapala today announced the sale of its entire injection molding business to Muottituote Group Oy, a Finnish mold and injection parts maker. The companies have done business together for more than 40 years, and Rapala wants its factories to focus on making finished products while acquiring components from contract manufacturers. In turn, the deal will help Muottituote become a bigger player in the mold-making business.
The agreement, signed on December 22, 2023, includes Rapala's subsidiary KL-Teho Oy's real estate in Korpilahti, Finland, along with the injection molding operations, equipment and personnel. The factory makes molded components for Rapala fishing lures, Peltonen skis, Marttiini knives, and Mora, UR and Strike Master ice drills.
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The transaction includes some 20 employees who will transfer to Muottituote Group. According to Muottituote, the factory's operations will continue without interruption, maintaining the same functions.
Rapala said the deal won't impact KL-Teho's ice drill manufacturing business.
In a statement, Rapala CEO Lars Ollberg said the sale will help his company focus on core business and release capital. Rapala's new "One More Turn" strategy hopes to accelerate inventory turnover and improve cash flow.
Rapala last month made a larger play in the U.S. rod and reel market when it acquired the 13 Fishing rod and reel brand. According to Rapala, 13 Fishing offers freshwater and in-shore rods and reels and is a market leader in the ice fishing market.
Muottituote is a small, family-owned company founded in 1973. The company has more than 90 employees, and the deal will nearly double the company's machine count to more than 50 injection molded machines.
