Wonder Auto Technology, Inc. a Chinese manufacturer of automotive electrical and suspension parts, has entered into an agreement to acquire a controlling stake of Jinan Worldwide Auto Parts Co (JWAA), a maker of automotive valves.
Under the deal, Wonder Auto will pay a total cash consideration of RMB80 million for 65% in JWAA. The price will be adjusted downward or upward if JWAA's audited net income for the twelve months ended December 31 is lower than RMB19.48 million, or higher than RMB22.88 million.
JWAA bills itself as the largest engine valve and tappets manufacturer in China. Its customers include automakers and engine manufacturers, including Shanghai VW, Tianjin Toyota, Ford Motor of the U.S., FAW Auto, Chery Auto, Geely Auto, Cummins Engine, Weifang Diesel Engine, and Shanghai Diesel Engine.
Jinzhou City, China-based Wonder Auto Technology designs, develops, manufactures and sells automotive electrical parts and suspension products.