TYM Acquisition of Kukje: Any Speculation On Branson Future

[airbiscuit]

US $50M is not a lot to pay for a manufacturing company.

 

[Texasmark]

So looks like TYM has put a Kukje engine in their new model t264 tractor.

source: New Tractors to Look for in 2019 - YouTube

My opinion based on nothing.....TYM bought Branson for the Cummins production license. My opinion based on relationship/experience with said, Branson would be miles ahead of where they were before the acquisition had they had a different management style at the top. Looks like TYM is going to be the shot in the arm they needed.

 

[bigcut]

My opinion based on nothing.....TYM bought Branson for the Cummins production license. My opinion based on relationship/experience with said, Branson would be miles ahead of where they were before the acquisition had they had a different management style at the top. Looks like TYM is going to be the shot in the arm they needed.

Tex,
I've been befuddled by the acquisition. Usually, a big part is to consolidate operations, thus, gaining economies of scale, ie., purchasing, engineering, personnel, consolidating production, etc. But, it appears that wasn't the motivation.
I think you have the best theory so far, assuming TYM couldn't just purchase a license themselves. Or, maybe the cost of the license was not much less than buying Kukje and gaining the hard assets along with the license.
In terms of the $50 M paid for Kukje, the price is usually driven by a multiple of the profits or potential profits as foreseen by the acquiring company. This against the debt that would have to be assumed. Without the financials, we can only speculate.
The other thing I struggle with is that, my perception is that Branson builds a better tractor than TYM, again, just perception. I also don't know what the other parts of Kukje exist, that may have provided an incentive or detracted from the price.

 

[Texasmark]

Tex,
I've been befuddled by the acquisition. Usually, a big part is to consolidate operations, thus, gaining economies of scale, ie., purchasing, engineering, personnel, consolidating production, etc. But, it appears that wasn't the motivation.
I think you have the best theory so far, assuming TYM couldn't just purchase a license themselves. Or, maybe the cost of the license was not much less than buying Kukje and gaining the hard assets along with the license.
In terms of the $50 M paid for Kukje, the price is usually driven by a multiple of the profits or potential profits as foreseen by the acquiring company. This against the debt that would have to be assumed. Without the financials, we can only speculate.
The other thing I struggle with is that, my perception is that Branson builds a better tractor than TYM, again, just perception. I also don't know what the other parts of Kukje exist, that may have provided an incentive or detracted from the price.

My personal opinion and actual experience. I had the 6530 and I needed a helping hand doing the kind of things you can do with a "mobile" hoist in and around tight spaces on my farm. I was pre sold on the 2400 and contacted a dealer to buy one. He was sold out and I had to wait till the middle of the next week for a truck full of new ones to arrive.....good point right off.

The dealer was a Branson-TYM dealer and when I got there had half a dozen 2400s sitting around. One was handy so I jumped on it, took it for a spin and told the sales guy to work me up a cash price. While he was gone, I saw a TYM of the same HP and amenities (4wd, loader) was sitting adjacent to it. What the heck, I "kicked the tires", hopped on and took it for a spin whereby I parked it where I found it.

The sales guy came out with my quote, super numbers, I whipped out the checkbook and went home with my Branson........no doubts period! I think TYM did their homework before they made Branson an offer.......and Branson was smart to take it.

 

[Asteral]

so from what i know the TYM- branson acquisition was strictly for the manufacturing side of Kukje Machinery, ( i know a guy who works at a branson dealership)
There won't be any mixing of brands they plan to keep both Branson & TYM separate lines of equipment, the TYM purchase was so they could get better access to parts for their own tractors, which if anyone has had a tym in the past few years knows parts sometimes can be hard to source or the wait time will be long.

that is all i know about it so far, but if anything changes i'll try to lt everyone know.

 

[Texasmark]

so from what i know the TYM- branson acquisition was strictly for the manufacturing side of Kukje Machinery, ( i know a guy who works at a branson dealership)
There won't be any mixing of brands they plan to keep both Branson & TYM separate lines of equipment, the TYM purchase was so they could get better access to parts for their own tractors, which if anyone has had a tym in the past few years knows parts sometimes can be hard to source or the wait time will be long.

that is all i know about it so far, but if anything changes i'll try to lt everyone know.

Big Tex? Bought my 2400 from you!

 

[Asteral]

Yea that is us. Hope your enjoying your tractor.
And i hope this info helps anyone who was interested in the acquisition information.

 

[Texasmark]

Yea that is us. Hope your enjoying your tractor.
And i hope this info helps anyone who was interested in the acquisition information.

You betcha. I use it all the time for all kinds of odd jobs and don't know how I did without it.

 

[kevanos]

Thatç—´ good. If you like red tractors, McCormick sold a red version back then, they have now switched to a Branson built tractor. But there was a time you could get a Kioti in white, orange and red. They just had different stickers on them. Those tractors I think are great, strong, easy to work on. Not like most new ones.

McCormick switched to Daedong/Kioti FROM LS to source compact/utility tractors, along with sister-brand Landini. They did NOT switch to Kukje/Branson.

 

[kevanos]

Kukje was basically in bankruptcy when sold to TYM. It was part of a larger conglomerate Dongkuk Steel. The Branson name has been expanding. In 2017, they began a partnership in India which is producing VST-Branson tractors. In 2018 they began supplying tractors to Ursus in Poland.

TYM has supplied tractors to Mahindra USA for years, at least since about 2007; build some compact Lamborghini tractors, RK Tractors, new utility models for Zetor since 2017 and signed a deal with Swaraj (part of Mahindra) in India. They formerly supplied Montana, Millenium, SAME, Scorpion, Allmand, Cabela's, etc...

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