HARBIN, China, Oct. 19, 2009 (PRNewswire-Asia-FirstCall) -- Harbin Electric, Inc. ("Harbin Electric" or the "Company", Nasdaq: HRBN), a leading developer and manufacturer of a wide array of electric motors in the People's Republic of China, today announced that Harbin Tech Full Electric Co. Ltd. ("Harbin Tech Full"), a wholly owned subsidiary of the Company, completed the acquisition of Xi'an Simo Motor Incorporation (Group) ("Simo Motor"), one of China's leading electric motor companies.
On October 6, Harbin Electric announced that Harbin Tech Full had signed a definitive agreement to acquire 100% of the outstanding shares and all of the corresponding assets of Simo Motor in consideration for the payment of a purchase price equal to no less than six (6) times and no more than eight (8) times the 2008 audited net profits of Simo Motor.
As of the closing date, Harbin Tech Full had completed the registration of the share transfer with the requisite PRC authorities and had obtained the required business registration and transfer of licenses of Simo Motor, all as contemplated by the definitive agreement. On October 13, Simo Motor changed its name to Xi'an Tech Full Simo Motor Co. Ltd.
The Company believes that the acquisition of Simo Motor is the most significant step to date in the Company's strategy to expand its industrial rotary motor business to large size and special type of rotary motors. The Company anticipates that this acquisition will further strengthen the Company's leading position in the electric motor industry in China. The Company intends to immediately begin the process of integrating Simo Motor into its existing businesses.
About Simo Motor
Simo Motor was initially established in 1955 as a state-owned company and one of the major backbone companies of China's electric motor industry. Since then, Simo Motor has become a leading developer and manufacturer of industrial rotary motors that provides solutions for electrical driving systems. In January 2004, Simo Motor was privatized as a shareholding company. It develops and manufactures various industrial motors including some 28 series, over 450 categories and more than 8,000 models of high and low voltage, small, medium, and large-sized motors with output power ranging from 0.35kW to 13,200kW. Its products are widely used in the machine tool, pump, blower, compressor, transportation, agriculture and food industry, steel rolling, power supply, building and construction materials industry, aviation, navigation, hi-tech fields, etc.
