LOS ANGELES, Calif., July 2 /Xinhua-PRNewswire-FirstCall/ -- Home System Group (OTC Bulletin Board: HSYT), an international manufacturer and distributor of home appliance products to major global retailers based in Guangdong Province, in the People's Republic of China, today announced that it has closed the acquisition of Zhongshan City Juxian Gas Oven Co., Ltd., which was first announced on April 23, 2007.
Zhongshan City Juxian Gas Oven Co., Ltd., or Juxian, was founded in 2001, and develops and manufactures a broad range of stainless steel and metallic gas grills and ovens, and electric and gas heaters for major retailers in the United States and China. Juxian's facility is ISO 9000-2000 certified and encompasses approximately 100,000 square feet situated on approximately 4.5 acres of land. Juxian's operations include 3 grill production lines with retail price points between $100 and $500, 2 electric and gas heater production lines and 2 accessories production lines.
Final consideration for the acquisition was $14 million, $4 million of which was paid in 1,000,000 shares of the Company's common stock, valued at $4.00 per share, and $10 million of which the Company has committed to paying over a two year period, as evidenced by non interest-bearing, unsecured promissory notes delivered by the Company to each of Juxian's shareholders.
"We are pleased to complete the acquisition of Juxian as it will broaden our BBQ gas grill product offering while enabling us to expand our customer base and leverage economies of scale to improve margins," commented Mr. Li Wei Qui, CEO and Chairman of Home System Group.
About Home System Group
Headquartered in Hong Kong, China, Home System Group, through its wholly owned distributors Oceanic International (Hong Kong), Ltd. (OCIL) and Oceanic Well Profit, produces and distributes home appliances, including stainless steel gas grills, residential water pumps, electronic fans, fruit processors, and other electrical appliances to retailers in the U.S., Europe and Australia. The Company became public through a reverse merger on October 4, 2006. Please visit the Company's website at: http://www.homesystemgroup.com .
Safe Harbor Statement
Certain statements in this news release may contain certain forward- looking statements about Home System Group's business and products, including, but not limited to, statements regarding the ability of Home System Group to broaden its gas grill product offerings, expand its customer base and improve margins. Actual results may differ materially from the results expressed in the forward-looking statements due to a number of risk factors including, but not limited to: general economic and business conditions globally; product development; shipments to end customers; market acceptance of new and existing products; additional competition from existing and new competitors; changes in technology; economic, political, and social events in China and other regions and markets; securities markets trends; regulations of the U. S. Securities and Exchange Commission (SEC) and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and by the risk factors detailed in the Company's reports filed with the SEC. Home System Group undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
Michelle Zheng
Home System Group
Tel: +1-213-223-2277
Email: michelle@homesystemgroup.com
Matt Hayden
HC International, Inc.
Tel: +1-858-704-5065
Email: matt@haydenir.com
