China Digital (CHID.OB) has completed the acquisition of Billion Electronics and its wholly-owned principal operating subsidiary, Shenzhen E'Jinie Technology Development Company (SETD).
Based in Shenzhen, China, SETD is one of China's largest battery shell manufacturers with the daily capability to produce 300,000 steel and 200,000 aluminum shells for Lithium-ion batteries and 200,000 aluminum battery caps, and which are widely used in digital mobile devices such as digital cameras, cell phones, MP3 players, laptop computers and PDA's.
The purchase price for the acquisition was $11.5 million, which was paid through a combination of cash and stock. SETD is expected to be immediately additive to revenue and earnings. Revenue for the company's most recently completed fiscal year 2003 was CNY 17.5 million, which is the equivalent of $2.1 million.
The company produces battery shells and caps at its state-of-the-art 4,000 square meter factory, which contains over 100 pieces of testing equipment and production machinery and 526 highly skilled employees. The company also owns its own research and development arm, which has just recently developed a proprietary technology for preventing air leaks on aluminum battery caps. The transaction represents the first acquisition for China Digital Communication Group as it seeks to develop a multinational business specialized in manufacturing, marketing and distributing mobile device batteries and telecom equipment.