Perlos Corporation has today signed an agreement for buying a majority share of the business of a mould manufacturer CIM group in China. This is done by acquiring 75% of CIM Precision Molds (HK) Limited in Hong Kong, and of a subsidiary of that, which is located in Shenzhen in Southern China. As part of the transaction, the business and fixed assets of CIM group's other Chinese subsidiary in Dongguan will be transferred to the acquired Shenzhen company.
CIM is currently one of Perlos’ most important mould suppliers in China. The deal enables Perlos to build a similar full-service mould centre in China to those it already operates in Europe and the United States. Both parties see the deal as a good opportunity to utilise their expertise and resources in the further development of the mould manufacturing technology.
The deal secures Perlos an annual capacity of some 150 to 200 moulds and the services of over 200 professionals in the mould making business. CIM operates currently in Shenzhen and Dongguan. During spring 2005, all operations will be centralised to Shenzhen. The Shenzhen company will be renamed as Perlos Precision Moulds and Moulding (Shenzhen) Co. Ltd. The Hong Kong company will act as a customer service centre for the existing customers of CIM.
The seller will have a 25% shareholding of the new set-up, and its principle shareholder Mr Lai Yuk Shing will remain as an executive in the company. Perlos will pay part of the consideration with its own shares. The purchase price will not be disclosed by request of the seller.
The net sales of the CIM group in 2004 were approximately 60 million Hong Kong dollars. The main customers of CIM are e.g. Hewlett-Packard, Perlos, Viva, Gillette, Compaq, Braun, Kodak, K-rain, Dow Inclosia, TRW, Bose and Microsoft.