China Valves Technology Inc. (CVT) announced that on 13 January 2010, the Company formally completed the acquisition of 100% asset ownership of Yangzhou Rock Valve Lock Technology Co. Ltd for USD 7.3 million in cash. China Valves will consolidate Yangzhou Rock’s operations into its financial results effective January 2010. Yangzhou Rock has limited working capital requirements and China Valves expects Yangzhou Rock to contribute approximately USD 8.6 million in revenue and USD 3.0 million in net income for 2010. As result of this acquisition, Yangzhou Rock became a wholly-owned subsidiary of China Valves. As a result of this acquisition, China Valves owns all patents that were applied for by Yangzhou Rock, including a patent for a 90 degree rotating valve lock device, a patent for a key management control device and a patent for a type of mechanical valve interlock.
