Today, China’s leading, private, high purity graphite and fine grain supplier, China Carbon Graphite Group, Inc., announced that it has signed a Letter of Intent to acquire 100% of assets of Chiyu Carbon Graphite Ltd. Chiyu is a down-stream producer of graphite products.
To acquire the company, China Carbon will pay no more than 3 times Chiyu’s historical average earnings of 2008 and 2009. China Carbon will hire BDO Guangdong Dahua Delu to perform the due diligence. The transaction is contingent upon obtaining free land use in the Industrial Park, as well as preferential policies from the local government. The terms are subject to negotiation and execution of binding definitive documents after all parties complete the due diligence process.
Located in Heibei Province, Chiyu manufactures graphite molds for EDM, drilling tools, and metal Smelting. It also specializes in graphite crucibles, bearings, sealing rings and graphite anodes for lithium batteries. Chiyu’s distinguished products can be found in machining, metallurgy, construction, chemical, military, and aerospace industries. After the transaction finalizes, Chiyu will relocate to a new facility in Yangfan Hi-tech Industrial Park in Xingtai City.