255 million yuan! Silicon Treasure Technology M & A Tuoli Technology

On April 20, Silicon Treasure Technology announced that in order to consolidate and further enhance the company's competitive advantage in the silicone rubber industry, enrich and improve the company's industrial layout, and enhance the company's profitability, the company and its wholly-owned subsidiary Chengdu Silicon Treasure New Materials Co., Ltd. (Referred to as "Silibao New Materials") plans to acquire 100% equity of Chengdu Tuoli Technology Co., Ltd. (referred to as "TuoLi Technology") in cash, with a transaction consideration of 255 million yuan (before tax).

As the only listed company in China that integrates the production, research and development of silicone room temperature adhesives, and the production of special production equipment for adhesives, silicon treasure technology products are widely used in building doors and windows and curtain walls, energy saving and environmental protection, electronic power, automobile manufacturing, highway bridges and airport runways. , Subway engineering, solar energy and other fields.

As an enterprise established for more than 20 years, Tuoli Technology has rich accumulation in technology and market customers. The acquisition of Tuoli Technology will help the development of silicon treasure technology in the research and development, production, sales and technical services of functional polymer materials such as silicone, epoxy and ultraviolet curing.

This transaction also includes the content of the gambling agreement, that is, in the next three years after completion, Silicon Treasure Technology and Silicon Treasure New Materials will conduct operational assessments on the operational performance of Tuoli Technology. The main assessment contents include: the next three years, Tuoli Technology plans to achieve the goal of deducting non-net profit of 15 million yuan, 20 million yuan and 25 million yuan respectively (that is, the cumulative net profit of the three-year assessment will reach 60 million yuan). In addition, Sibao Technology also requires Tuo Li Technology's cumulative operating net cash flow for the three years from 2020 to 2022 to be no less than 80% of the cumulative profit for the three years. After the main management team reached the agreed performance evaluation, Sibao Technology and Sibao New Materials agreed to give the main management team a 40% performance reward for the excess performance.

The data shows that in 2018 and January-October 2019, Tuoli Technology achieved operating income of 138 million yuan and 106 million yuan, and net profit of 9.263 million yuan and 6.833 million yuan. If the target of deducting non-net profit next year is to be achieved 15 million yuan, Tuoli Technology will achieve the task of doubling the net profit in 2020.

Wang Youzhi, chairman of Silicon Treasure Technology, said that an important factor for the company and Tuoli Technology to finally reach a merger and acquisition is the highly complementary nature of the businesses of both parties. The start time of the two parties in the industry is close. Silicon Treasure Technology mainly focuses on construction adhesives. Tuoli Technology has obvious advantages in electronic appliances, UHV, 5G communications and other fields, which are exactly what Silicon Treasure Technology wants to expand in the future. direction.

This acquisition is beneficial to broaden the company's industry layout, enrich the company's product line, quickly cut into emerging fields and break into the supply chain of leading companies. In the future, Sibao Technology will be empowered by resources such as branding, management, and capital, and strongly support Tuoli Technology to gain a larger market share.