MELBOURNE, Australia, February 5, 2018 /PRNewswire/ —
Sincerity Applied Materials Holding Corp (OTC Pink: SINC) announced today that it has signed a formal, non binding, letter of intent (LOI) to acquire Jiangsu Xiangli, a manufacturer of specialty raised flooring systems used primarily for data room and surface covering for under floor communication cabling.
Jiangsu Xiangli had sales of approximately $20 million and operating profit of $4 million in 2017 with projected sales of $30 million for 2018. The acquisition price has been set at level of approximately $12 million, comprising 50% cash and 50% stock.
In announcing the proposed acquisition, James Zhang, Chairman & CEO commented: “This acquisition will allow us to continue our rapid sales growth trajectory of the past 12 months. Importantly, it provides an initial launchpad for our platform of technologically superior companies in the applied materials business. Using the expertise in polymer technology enjoyed by our manufacturing partner in China, Sincerity has been able to rapidly build its global customer base for polymer-based products, notably, we are a significant supplier to Australian-based Visyboard Group, one of the worlds’ leading packaging and recycling companies.”
Mr Zhang continued: “By acquiring well managed and profitable companies with which we have synergies, we can continue to execute on our business plan. These acquisitions enhance our product range and brand recognition, build our customer base, particularly in the area of customized products, and will accelerate our timetable for listing on a major exchange in the US in 2018. Additionally, a significant proportion of Xiangli’s flooring products are polymer based and can be enhanced by applications developed by our China partner as part of its ongoing program of research & development which it conducts in cooperation with a number of leading universities in China.”
Existing management team of Xiangli will be retained and the transaction is anticipated to close in the second quarter of 2018.
About Jiangsu Xiangli
Xiangli Anti-Static Decorative Material Co., Ltd (Jiangsu), established in 1996, is a leading manufacturer of raised access floor material in China. Xiangli produces 3,500,000 square meters of access floor every year.
With more than 10 years export experience, Xiangli has developed business in 60 countries around the world. The Company’s customer base includes Foxconn of Taiwan (contract manufacturer of Apple products, including IPhone), Huawei, Samsung, Sinopec, China Mobile and China Telecom.
For more information, please visit http://www.xlraisedfloor.com/