CD International Enterprises, an emerging leader in the field of industrial commodity distribution, is promoting rapid growth through the utilization of an aggressive merger and acquisition strategy. Earlier this week, the company took a significant step toward realizing this goal by entering into an agreement to acquire a holding company that recorded consolidated revenues of more than $25 million and consolidated net income of over $6 million in 2014, according to unaudited financial statements.
Based in Hong Kong, the acquisition candidate is currently a wholly owned subsidiary of HK International Finance & Investment Group Limited and has diversified operations in a collection of service industries – including hospitality, health endowment and construction design. CDII’s management team has already initiated its due diligence process for the acquisition, and it plans to complete an audit of the candidate’s recent financial statements by the end of this year.
“One of management’s focuses on growing the company again is growth through merger and acquisition,” Dr. James Wang, chairman and chief executive officer of CDII, stated in a news release. “Management is actively looking for merger and acquisition opportunities that align with our strategic priorities.”
Since terminating its manufacturing business in 2014 in favor of less capital intensive business opportunities, CDII has operated under two unique segments – including its mineral trading segment, which sources and distributes industrial commodities to China, and its consulting segment, which provides consulting services to firms that operate or are seeking business opportunities primarily in China and the Americas. Through these two segments, CDII has established a substantial business network throughout its target markets which is now playing a key role in its global expansion efforts.
While slumping mineral prices have had a considerable effect on its financial results in recent months, the company expects demand for its consulting services to steadily rise through 2017. This demand, in combination with the extended reach provided by its recently announced acquisition agreement, are expected to facilitate CDII’s financial growth in the months to come. For prospective shareholders, CDII’s progress toward the monetization of its established business network makes it an intriguing investment opportunity moving forward.
For more information, visit www.cdii.com
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