Jiangsu Rainbow Heavy Industries Co., Ltd. entered into an agreement to acquire remaining 49% stake in Rainbow-Cargotec Industries Co. Ltd. from Cargotec Finland Oy for CNY 93 million.
May 10, 2020
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Jiangsu Rainbow Heavy Industries Co., Ltd. (SZSE:002483) entered into an agreement to acquire remaining 49% stake in Rainbow-Cargotec Industries Co. Ltd. from Cargotec Finland Oy for CNY 93 million on May 11, 2020. Under the terms of transaction, Cargotec also acquire certain operations and assets from Jiangsu Rainbow Heavy Industries. Post completion, Cargotec Finland Oy and MacGregor will continue selling their offering to customers globally, partnering together with Rainbow-Cargotec Industries and Jiangsu Rainbow Heavy Industries. Rainbow-Cargotec Industries reported revenue of CNY 754.6 million, total assets of CNY 1.28 billion, net loss of CNY 8.84 million and total common equity of CNY 635.7 million as of December 31, 2019. As part of the agreement, about 160 RCI employees are estimated to move over to Cargotec Finland Oy once the change in ownership structure has been completed. The transaction was approved by the Board of Jiangsu Rainbow Heavy Industries Co., Ltd. Cargotec will book a cost affecting comparability €35 million (CNY 268.7 million) in its second quarter 2020. Ernst & Young acted as financial advisor and due diligence advisor for Cargotec Finland Oy.
Jiangsu Rainbow Heavy Industries Co., Ltd. is a China-based company principally engaged in the design, research, development, manufacture, sales and services of products for high-end equipment manufacturing business. The Company operates through two main segments. The General Equipment Manufacture segment is mainly engaged in the design, manufacture, sales and services of lifting equipment, ships and accessory equipment, marine engineering equipment and three-dimensional parking equipment. The Energy Saving and Environmental Protection segment is mainly involved in the provision of sludge treatment and disposal services, industrial wastewater treatment services and others.
Jiangsu Rainbow Heavy Industries Co., Ltd. entered into an agreement to acquire remaining 49% stake in Rainbow-Cargotec Industries Co. Ltd. from Cargotec Finland Oy for CNY 93 million.