China Direct to acquire Shanghai Long Chemicals
21/09/2006
Management and consulting firm for China-based companies China Direct, Inc. has signed a definitive agreement to acquire 51% of Shanghai Long Chemicals Company Limited.
Under the agreement, CDI China, Inc., a wholly-owned subsidiary of China Direct, will inject $701,250 to recapitalise Shanghai Long. After the recapitalisation, it will own 51% of Shanghai Long. Current management of Long, will work with management of CDI Shanghai Company, a wholly-owned subsidiary of CDI China, Inc., in managing the daily operations of Long.
Long generated approximately $23.4 million in annual revenues in 2004 and $31 million in 2005. It is engaged in the distribution and manufacturing of fine chemical products, specialising in those used in paint and glue, medicine intermediate, textile and leather auxiliaries.
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