China 3C Group, a retailer and wholesale distributor of consumer and business products, has acquired Jinhua Baofa Logistic, a transportation logistics company in eastern China. This was first announced in January for completion in March. Now it is being completed in July.
The transaction was through the company’s subsidiaries, Zhejiang Yong Xin Digital Technology and Yiwu Yong Xin Communication. The price was RMB120 million ($17.4 million). For the year ending December 31, 2008, Jinhua had revenue of $10.5 million, net income of $1.9 million and a gross margin of 34.9%.
Jinhua is a well-known transportation logistics company in eastern China and has been a long time transportation provider for China 3C. Zhenggang Wang, Chairman of the Board and Chief Executive Officer, is the founder.
Jinhua has approximately 280 customers and operates a fleet of more than 70 trucks and transports freight, including electronics, machinery and equipment, metal products, chemical materials, garments and handcrafted goods. Its transportation services cover more than 20 cities in Eastern China.
PR NewsWire, which takes thousands of words to sum up this transaction, states that the acquistion will serve as a transportation provider to the existing wholesale and retail store-in-store operations.