On December 20, 2022 (Pacific Standard Time), GD Medical Inc., an overseas wholly-owned subsidiary of Zhejiang Gongdong Medical Technology Co., Ltd, signed the "Asset Purchase Agreement" with Trademark Plastics, Inc. (TPI) and its shareholders. The estimated purchase price of this transaction is US$42 million, and the final purchase price will be adjusted accordingly based on the seller's liabilities, accounts payable and estimated closing transaction costs on the closing date.
TPI was founded in 1989, located in California, USA. This company is mainly engaged in the research and development, manufacturing and sales of polymer disposable medical consumables, medical parts and other products. Up to now, TPI has passed ISO13485 quality management system certification and MedAccred certification. Since its establishment, TPI has produced more than 300 different polymer disposable medical consumables, medical parts and other products for many well-known medical device manufacturers around the world.
The realization of overseas acquisition transactions will help Gongdong realize the layout of overseas production capacity, and complement the advantageous resources through the industrial collaboration between Gongdong and the underlying asset group. On the one hand, Gongdong will take advantage of its scale advantages and cost advantages to reduce costs, increase efficiency, and promote the company's products in downstream application industries with high cost performance. On the other hand, Gongdong and the underlying asset group will share channels and customers, enhance the company's regional competitive advantages overseas. Enhance the ability to expand overseas markets, and facilitate the acquisition of new customers, new markets, and new technologies, and better fulfill the obligations of the company. The supply commitment and customer maintenance of overseas customers will further improve the company's research and development capabilities, comprehensive competitiveness, as well as market share, thereby to promote the sustainable development of Gongdong.