China Linen Textile Industry Ltd, a China-based producer of linen yarn and fabric, announced the closing on November 24, 2010 of its acquisition of Lanxi Tianxianfang Linen Co., Ltd.
China Linen acquired 100% equity interest in Lanxi Tianxianfang Linen Co., Ltd. for approximately $6.7 million in cash. The Company completed the change in registration of the equity interest from shareholders of Lanxi Tianxianfang to Lanxi Sunrise Linen Textile Industry Co., Ltd. with the relevant PRC authority on November 24, 2010.
"We are very pleased that we have closed the acquisition of Tianxianfang in a timely manner," commented Mr. Gao Ren, Chairman and CEO of China Linen. "The acquisition will expand our linen yarn production by 39% to 2,220 tons annually, and linen fabric production capacity by 26% to 10.1 million meters annually, and add bleaching capability to our business. We feel confident that Lanxi Tianxianfang will contribute at least $2.7 million in net income during the next 12 months."
China Linen Textile Industry, Ltd is principally engaged in the production and sale of linen yarn and various types of linen fabric. The Company is also involved in consultation and R&D related to linen technology and linen products.