Zhejiang Hailiang Co., Ltd. (hereinafter referred to as “the Company”) signed an Equity and Asset Purchase Agreement with KME Germany GmbH & Co. KG (hereinafter referred to as “KME”) on 28th January 2019 to acquire KME’s three copper alloy rod manufacturers in Germany, France and Italy, as well as two copper tubes manufacturers in Germany and Spain.
KME, one of the world's largest manufacturers of copper and copper alloy products, is a global leader in the copper processing industry, enjoying a good reputation in the global copper and copper alloy processing market. The company acquired all its copper alloy rod business and partial copper tube business.
On 31st March 2019, the parties to the transaction jointly signed legal documents such as the Memorandum of Delivery. The transaction has been delivered and completed after full payment including transaction consideration according to the Equity and Asset Purchase Agreement was made by the Company. Upon the close of the transaction, the Company holds 100% shares and related assets of the KME Group's five factories in Europe.
The Company has, according to an established plan, started various integration work in an orderly fashion. The acquisition will enable the Company and the company under Agreement to share technologies, accelerate the output of the refined management experience, continuously enhance the operational efficiency of the acquired company, and quickly bolster the profitability of the Company. Meanwhile, it is expected to deliver high-end copper alloy rod manufacturing technology to Hailiang Stock, and helps the Company to explore the European high-end copper alloy rod market. Furthermore, the brand reputation of KME is favorable for the Company to expand the European high-end market and rapidly increase its market share.