Global Sources to Acquire Interest in Shenzhen International Machinery Manufacturing Industry Exhibition and its Related Shows
Global Sources (NASDAQ: GSOL) has entered into an agreement to acquire an ownership interest in the Shenzhen International Machinery Manufacturing Industry Exhibition and its related shows (SIMM). Per the terms of the agreement, Global Sources is set to acquire a 70 percent interest in the Shenzhen International Machinery Automation Exhibition and the Shenzhen International Mould Making Technology & Product Exhibition, and a 56 percent interest in the Shenzhen International Cutlery & Tools Exhibition and the Shenzhen International Metal Processing Industry Exhibition, for a consideration ranging from approximately US$11 million to approximately US$16 million, depending upon certain performance-related conditions. The transaction is subject to closing conditions.
SIMM is held annually in Shenzhen, one of the major manufacturing cities in China. Established in 2000, the event has continually grown and developed each year. The 2012 event hosted approximately 4,400 booths, and 70,800 visitors. In 2013, the event took place from March 28 through 31 and included the categories of mold manufacturing technology and products, cutlery and tools, machinery automation, and metal processing, with approximately 4,600 booths and more than 75,000 visitors.
Global Sources' executive chairman, Merle A. Hinrich, said: "Our ownership interest