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.”