Rofin Buys Stake in Laser Biz
PLYMOUTH, Mich., & HAMBURG, Germany, Sept. 9, 2008 -- Industrial laser maker Rofin-Sinar Technologies Inc. announced it will acquire an 80 percent stake in Nanjing Eastern Laser Co. Ltd. of China in two separate cash transactions.
Rofin-Sinar, which is based in Plymouth and Hamburg, bought 35.2 percent of Nanjing Eastern Laser Co.'s (NELC) capital from Nanjing Sanle Group Co. Ltd. of China through a Chinese equity transfer center's formal bidding process; the company was the only bidder. In a second transaction, it acquired an additional 44.8 percent of NELC from US-based Sida Corp. Further terms of the acquisition were not disclosed.
Jointly established by Nanjing Sanle Group Co. Ltd. and Sida in 1993, NELC has partnered with Rofin-Sinar since that year and has been authorized to manufacture SM CO2 Blasers using Rofin's processes since 2004.
NELC’s product lines are largely comprised of high power, fast-axial flow CO2 lasers, with a power range of up to 3 kW as well as NC-based laser processing equipment. The company, which has approximately 70 employees, will continue to operate as a stand-alone company and market its products through its own sales network to its primarily Chinese customer base, Rofin-Sinar said.
“We are very pleased to add NELC to the Rofin group, as we have found a reliable partner with long-standing expertise in the manufacture of CO2 laser technology in the Chinese market. Through this acquisition, we will broaden our manufacturing capacities. We are confident that the talent and skills of Nanjing Eastern Laser’s employees will further strengthen our market position in China,” said Günther Braun, president and CEO of Rofin-Sinar.
“Becoming a part of such a large company will open up new resources for NELC in terms of technology know-how and investment, both of which will enhance the potential expansion of our business,” said Dr. Su-Don Hong, NELC president.
Both transactions are expected to close within six weeks.
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