China Direct, Inc., a leading diversified management and consulting company for China-based companies,  announced it has signed a definitive agreement to acquire 51% of Shanghai Long Chemicals Company, Limited.

Under the agreement, CDI China, Inc., a wholly-owned subsidiary of China Direct, will infuse $701,250 to recapitalize Long. After the recapitalization, China Direct, Inc. will own 51% of Shanghai Long.

Current management of Long, who are significant shareholders and remain committed to the long-term performance of Long, will work with management of CDI Shanghai Company, a wholly-owned subsidiary of CDI China, Inc., in managing the daily operations of Long.

Long generated approximately $23.4 million in annual revenues in 2004 and $31 million in 2005. All audit field work has been handled by China Direct auditors, and CDI expects to file an 8-K with two years audited financial statements within 30 days for the final closing.

Source:佚名