June 8, 2010 (FinancialWire) (Go to http://www.financialwire.net/?s=ftrdnwswnd for all of today’s featured news.) — Home System Group (OTCBB: HSYT), a manufacturer of household appliances sold by large retailers, said that Zhongshan City Weihe Appliances Co., Home System Group’s largest subsidiary, has agreed to acquire Zhongshan Sanfan Electrical Appliance Co., Ltd.  Under the terms of the agreement, Home System will purchase ninety percent of the ownership interest of Sanfan for an aggregate purchase price of around $12 million, based on a valuation of Sanfan of around six times of the net income for the twelve-month period ended March 31, 2010. The acquisition is scheduled to close during the third quarter of 2010.

China-based Sanfan is an export-oriented manufacturer of fans, which are largely distributed to Southeast Asia countries such as Malaysia and Singapore. Founded in April 2009, Sanfan manufactures fans ranging from industrial blowers to ceiling units.

For the twelve months ended March 31, 2010, Sanfan’s revenue and net income were around $15 million and $2.25 million, respectively, according to Home System.

China-based Home System Group is primarily engaged in the production of a variety of small household appliances, stainless steel gas grills and ovens, ceiling and table fans, and decorative lamps, LEDs and energy-saving lamps.

The firm’s products are sold through distributors and direct to retailers located in North America, Europe, Australia, Africa, Southeast Asia and China.

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