NEW YORK (AP) -- China-based Harbin Electric Inc., which manufactures motors, said Friday one of its subsidiaries agreed to buy Weihai Hengda Electric Motor Co. Ltd. and Wendeng Second Electric Motor Factory for about $54 million in cash.
The company said the acquisition will enhance its position in the Chinese electric motor industry.
Harbin Electric said the purchase price was based on total revenues of about $48.7 million and total profits of about $6.5 million recorded by the companies, known collectively as Hengda Electric Motor, for the year ended March 31.
The company said it expects to close the deal "as soon as practically possible."