Friday, April 26, 2013

Global Sources acquires stake in Chinese machinery exhibition


News this week: NASDAQ-listed Global Sources announced an agreement has been made to acquire a proportion of the Shenzhen International Machinery Manufacturing Industry Exhibition (SIMM) and its related trade shows. According to the terms of the agreement, Global Sources will acquire a 70% stake in the Shenzhen International Machinery Automation Exhibition and the Shenzhen International Mould Making Technology & Product Exhibition, and a 56% stake in the Shenzhen International Cutlery & Tools Exhibition and the Shenzhen International Metal Processing Industry Exhibition.

Subject to closing conditions, the cost of the acquisition will range from approximately US$11 million to US$16 million depending on the level of its performance. The last edition of SIMM was held from 28th to 31st March 2013 at the Shenzhen Convention and Exhibition Center, and attracted around 4,600 booths and more than 75,000 visitors.

Merle A. Hinrich, executive chairman of Global Sources, stated, “Our ownership interest in SIMM further assists us to establish a strong presence in a fast-growing market in China. With SIMM’s dominant presence in the machinery industry, combined with Global Sources’ globally established media platform, the partnership enables both parties to take advantage of this exciting opportunity.”

This post is excerpted from BSG's weekly e-newsletter which is part of our subscription research service, BSG Tracker. Visit our website to find out more about this service. You can also follow us on Twitter for all the latest updates.


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