Leader's Alliance-Truking's Newest Acquisition-Watertown
After 3 months hold on activities in stock market, On August 21st, Truking announces the aquisition of Watertown pharmaceutical in Changchun, who is the leader in water systems in China.The transaction has valued around 90 million US dollar.
The acquisition plan shows that the price of this equity transaction is totally worth around 90 million USD, Truking Technology will issue the Watertown shareholders 1,200 million shares by 34.56 Yuan per share, and pay around 20 million USD in cash to complete this acquisition.
The latest statistic from China Pharmaceutical Equipment Association states that the Watertown is the absolute leader of the water treatment equipment manufacturers in pharmaceutical industry, its revenue ranked No.1 in 2013.
One thing we have to focus is that the hot pressure distilled water machine from Watertown is not only used for pharmaceutical industry, and also covers the food, national defense and other fields.
According to public information, the revenue of Watertown in 2013 is more than 30 million USD, and its net profit is around 6 million USD; respectively increasing 67% and 153% compared with 2012. In addition, the net profit of Watertown is not expected to be less than 6 million, 7 million and 8.5 million USD during 2014-2016.
The president of Truking Technology, Mr.Tang Yue shown his attitude on this Merger as: This acquisition is kind of “marriage” between leading pharmaceutical machinery companies. The acquisition implies that the Truking Technology would develop further from middle of the pharmaceutical production equipment. The technology of Watertown will combine the management and marketing of Truking Technology to form significant synergies. It is also a merger and reorganization which would change and influence the pattern of Chinese pharmaceutical equipment industry.