China-based Home System Group produces small household appliances, stainless steel gas grills and ovens, fans, lamps, and various other products. The company today announced it has acquired 90 percent of the outstanding stock of Zhongshan Safan Electrical Appliances Co. Ltd. for $12 million; and the acquisition of 100 percent of the outstanding common stock of Jiangmen City Jinxinglong Electrical Appliances Co. Ltd. for $15 million.
Sanfan is an export-oriented manufacturer of a variety of fans ranging from industrial blowers to ceiling units. The company distributes its products primarily in Southeast Asia. For the half-year ended June 30, 2010, unaudited revenue and net income were approximately $10 million and $1.5 million, respectively. For the nine-month period ended December 31, 2009, the company reported revenue of $11 million and net income of $1.5 million.
Jinxinglong manufactures and distributes various industrial and decorative ceiling fans and table and fan-related accessories in North America. Home System Group is finalizing the audit, and estimates the approximate net income for the six months ended June 30, 2010, at approximately $10.6 million and $1.5 million, respectively. Revenue and net income for the fiscal year ended December 31, 2009, at approximately $17.6 million and $2.5 million, respectively.
Lei Yu, Home System’s CEO, said the completion of the two acquisitions reflect Home System’s desire to broaden its offerings and penetrate the fan and lighting market.
“We are very pleased to close these acquisitions Sanfan and Jinxinglong,” Yu stated in the press release. “With the completion of these two acquisitions, the company has made significant progress towards its goal of offering a diverse product portfolio and broadening our customer base. We also believe that our costs going forward can be meaningfully decreased due to the benefit of combining Sanfan’s and Jinxinglong’s purchasing with that of Home System’s. With a broader market for Home System’s products, the company will continue its robust product development, to better serve the growing market for fans and lightings.”
For more information visit: www.homesystemgroup.com
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