NEW YORK (AP) -- Harbin Electric Inc., a manufacturer of motors, said Friday one of its subsidiaries will acquire Weihai Hengda Electric Motor Co. and Wendeng Second Electric Motor Factory to expand its product offerings.
Harbin Electric will acquire the company and factory for either no more than 10 times Hengda Electric Motor and Wendeng Second Electric Motor's net profit for the 12 months ending March 31 or the value of the companies determined by an agreed-upon third-party appraiser.
The factory is operated and managed by Hengda Electric Motor.
The acquisition will help Harbin Electric expand its product offerings to include rotary motors.
The price of the deal will be determined within 20 days and the deal is expected to close within three months.