SHAREATE(688257) 证券时报网·2024-12-26 12:32Acquisition Details - The company plans to acquire 100% equity of Drillco Tools S A for $42 million through its wholly-owned subsidiary in Australia [1] - The transaction will be funded by the company's own capital and implemented by increasing capital to the Australian subsidiary [1] Target Company Overview - Drillco is a professional enterprise engaged in the R&D, production, and sales of rock drilling tools, established in 1982 with roots dating back to 1966 [6] - The target company has grown into a global supplier of high-quality rock drilling tools, offering products including DTH tools, roller bits, top hammer tools, and drill rods [6] - Drillco holds 31 patents for its DTH tools in multiple countries [2] - The company has 7 subsidiaries and 1 joint venture, with products sold in Chile, Brazil, Peru, the US, and the UK, widely used in mining, civil engineering, water wells, quarries, and geothermal industries [4] Strategic Benefits - The acquisition will help establish a roller bit assembly line or production plant in Chile to mitigate the impact of geopolitical and trade friction factors [3] - Post-acquisition, the company will own three major rock drilling tool brands: roller bits, top hammer tools, and DTH tools, forming a complete product portfolio [5] - The transaction will enhance the company's competitiveness in the South American market and promote its internationalization strategy [5] - Production integration is expected to significantly reduce the production costs of DTH tools by relocating some production to the company's Wuhan factory [7] R&D and Market Position - Drillco has over 50 years of experience in the rock drilling tools industry, particularly in DTH tools, with strong R&D capabilities and technological advantages [5] - The target company has established a comprehensive sales network in South America and possesses strong brand influence [5] - R&D expenses accounted for 3 3% and 3 6% of revenue (excluding trade income) in 2023 and January-August 2024 respectively [2] Business Relationship - Drillco is the company's largest customer, exclusively distributing its roller bit products in Chile, Peru, and Brazil [4] - The acquisition will enable the company to quickly promote its own top hammer tools through integrated production and channels [7]