Turbine Truck Engines Inc. and Hua Tec Enterprise Co. Ltd. recently entered into a Share Purchase Agreement in which TTE will acquire 80 percent of the issued shares of Hua Tec. Hua Tec owns all of the issued capital stock of its subsidiary Guangdong Kingtec Electrical Co. Ltd.
Per the agreement, TTE will assume control of all Kingtec’s resources, which it will use to assist in developing its patented Detonation Cycle Gas Turbine (DCGT) engine.
“This acquisition should accelerate the process of advancing the DCGT through the design and manufacturing process. Our team is also determined to promote Kingtec as a global leader in their core business. I invite readers to visit Kingtec’s website to get a better understanding of the assets and expertise we will be acquiring,” TTE president and CEO Michael Rouse stated in the press release.
TTE will also acquire control over Kingtec’s starter motors and alternators business, its management, engineering and manufacturing capabilities, and will gain access to the Kingtec’s established vertical channels.
For Kingtec, the acquisition represents an opportunity for it to globally expand its interests and distribution of its core product lines.
Rouse said TTE will continue to grow its business plan of strategic acquisitions established last year.
“By the end of the second quarter, 2009, we determined that growing TTE through mergers and acquisitions would play a pivotal role in our corporate strategy and we retained Greenberg Traurig LLP to assist us in the process. Kingtec will be our first acquisition, and it is a perfect fit for our company. It is an industry leader with a strong management team, state-of-the-art facilities, and established marketing channels that complement our ambitions,” Rouse stated.
For more information visit www.ttengines.com