Rotoblock has agreed to acquire controlling interest in Hikom Gottell Corporation for US$25 million.
The US-China venture intends to develop and manufacture small engines, air-conditioning systems and other consumer and industrial equipment.
"This opens a whole new horizon for Rotoblock's business plans," said CEO Chin Chih Liu. "Not only would we have a research and manufacturing facility in China, we will also have the financial backing to take the Company to new heights. At the same time, Rotoblock can help diversify the product lines being manufactured by Hikom Gottell and expand their market internationally."
Rotoblock signed a term sheet to acquire 51% majority interest in Hikom Gottell Corporation, a manufacturing company based in Nanjing. Hikom Gottell employs about 250 workers primarily involved in designing and manufacturing of commercial air-conditioning systems for automotive, building, and environmental applications. These products are distributed throughout China. Rotoblock's offer of US$25 million would be in cash and stock options. The final purchase price is subject to an independent audit, which will be carried out during the acquisition proceedings.
Rotoblock has agreed to purchase the hard assets of Hikom Gottell's manufacturing facilities in Nanjing as well as the name Hikom Gottell and its distribution network. The acquisition would include Hikom Gottell's 10-acre manufacturing complex, land, factories, manufacturing equipment, testing facilities, and delivery trucks.