Chinese jewelry maker Fuqi International Inc. said Monday it has agreed to buy Shanghai Tian Mei Jewelry Co. Ltd. and Beijing Yinzhong Tian Mei Jewelry Co. Ltd. for a total of about $19.3 million.
The two companies, collectively known as "Temix," operate a chain of about 50 outlet branded jewelry stores with locations in Beijing, Shanghai and Ningbo.
The company said the acquisition will give it access to Temix's license to buy diamonds from the Shanghai Diamond Exchange. The license will allow Fuqi to buy diamonds directly from the exchange, which could lower costs, the company said.
Fuqi said $11.4 million of the purchase price will be paid in cash and the rest will be paid in restricted common stock. The number of shares is subject to achieving certain performance targets in a two-year period following the acquisition, Fuqi said.
Fuqi said it will buy Temix through its subsidiary, Fuqi International Holdings Co. Ltd.
The jewelry maker said the acquisition will expand its presence in China's retail jewelry market. With the acquisition, Fuqi said it will be able to stay on plan for opening or buying 60 to 80 retail counters and eight to 10 retail stores.
Fuqi added that Temix will add to revenue in its third quarter.
The deal must still obtain government approval.
Fuqi shares rose 43 cents, or 5.6 percent, to $8.08 in afternoon trading.
Aucun commentaire:
Enregistrer un commentaire