Chinese LED manufacturer Mason Technologies intends to acquire OML Technology for RMB 30 million (US $4.8 million).
According to Mason Technologies, about RMB 28.2 million will be used to increase capital, while RMB 27.1 million will be used as additional paid-in capital. At the same time, the company will undergoes transfer of share. Mason Technologies will be securing 22% of OML shares through the acquisition.
OML Technology mainly manufactures LED high and low power strip lights, commercial lighting and landscape lighting products. OML Technology has been one of the major clients of Mason Technologies packaging products. In the first half of 2015, OML Technology revenue reached RMB 47.09 million and reported RMB 2.28 million in net profit.
OML Technology ensured shareholders that it will achieve the following targets this year: acquire net profit of at least RMB 15 million in 2015; minimum net profit of at least RMB 19.5 million, and achieve net profit growth of 30% Year-on-Year (YoY) by 2016. By 2017, the intended net profit should reach RMB 25.3 million and another 30% net growth.
According to Mason Technologies, the company’s decision to acquire OML Technology is to stabilize, strengthen and deepen the relationship and partnership between two companies. Doing so will create an ideal supply chain that invigorates the capacity of LED packaging products and advantages in economics of scale. Altogether, it will further increase the company’s LED package component market share and profitability.
