29 July 2021
On May 17, 2021, Henglin Home Furnishing Co., Ltd. (603661.SH, hereinafter referred to as "Henglin") announced that it had signed an acquisition agreement with Dongguan Uhome Furnishing Co., Ltd (hereinafter referred to as "Uhome"), Groli Trading Co., Ltd. (hereinafter referred to as "Groli") and Mr. Zhai Lin on May 15, 2021. Henglin will purchase the 100% equity of Uhome held by Groli for a cash consideration of RMB 480 million. After the completion of the transaction, Uhome will become a wholly-owned subsidiary of Henglin.
Henglin Home Furnishing Co., Ltd. was listed on the main board of the Shanghai Stock Exchange in 2017. It is a national high-tech enterprise integrating research and development and the production and sales of office chairs, sofas, massage chairs and other furniture. It is currently the leading health seat development enterprise in China, as well as one of the largest office chair manufacturers and exporters in China. It has ranked first in the export of office chairs for 12 consecutive years and has annual sales of nearly RMB 5 billion. Its products are exported to more than 80 countries and regions around the world.
Uhome has rich experience in manufacturing and construction management and related business resources. Henglin will combine with Uhome, integrating resources in the market and channel, production and technological fields as well as production and operation management so as to enhance the company’s overall market competitiveness and enterprise influence of Henglin, the acquisition will further expand the customized furniture business of Henglin Home Furnishing Co., Ltd.
In this project, JunHe acted as the legal adviser of Henglin. The team participated in the whole process of the transaction scheme demonstration and provided legal due diligence, transaction document drafting and revision and negotiation. JunHe’s team effectively promoted the transaction and won the recognition of its clients with their efficient, rigorous and steady working style.
For further information, please contact:
CHEN, Xunan, Partner, JunHe
chenxn@junhe.com
