Chinese-based appliance maker Home System Group said its subsidiary Zhongshan City Weihe Appliances Co. will acquire Zhongshan Sanfan Electrical Appliance Co., Ltd.
Home System will buy 90% ownership in Sanfan for $12 million and expects to close on the acquisition in the third quarter of 2010.
Sanfan is an export-oriented producer of fans that are largely distributed in Southeast Asia countries such as Malaysia and Singapore. Sanfan was founded in April 2009 and its products range from industrial blowers to ceiling fans, typically having greater cooling capacity than the fans Weihe produces. Sanfan's net revenue in the twelve months ended March 31, 2010, was approximately $15 million and net income was $2.25 million.
"Bringing Sanfan on board will help us quickly expand the company’s fans and lightings business, diversify our product portfolio and rapidly access the Southeast Asia market, thus broadening our customer base," said Home System CEO Mr. Yu. "By integrating Sanfan into Weihe, we believe that the manufacturing cost of fans and lightings can be decreased due to the pricing benefit of combining Sanfan’s purchasing with Weihe's. By providing a broader market for Home System’s products, Home System will be in better position to serve the growing market for fans and lightings."
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