Richmond's Tree Island Wire Income Fund (TSX:TIL-UN) has announced that it intends to acquire Baoan International Investment Co. and Universal Metal New Material Co. in a deal worth $18.5 million.
Baoan and Universal manufacture stucco reinforcing, engineered mesh and industrial wire products.
The two companies are owned by China's first publicly listed company, China Baoan Group Company Ltd.
Baoan operates out of California; Universal is Hong Kong-based. The two companies had combined revenue of roughly $67 million in 2006.
Tree Island, which produces wire products for construction, manufacturing and agriculture, said that the acquisition is part of its strategy to establish an base in Asia.
Tree Island share price range during the past week: between $6.50 and $6.79; 52-week high: $9.92; 52-week low: $5.50.