China Hainan Rubber Group (Hainan Rubber) plans to acquire an 80% share in latex pillow/mattress manufacturer, Jiangsu Aidefu Latex Products (Aidefu), for US$53.4 million.
Hainan Rubber is principally engaged in the planting, processing and distribution of natural rubber. The company’s major rubber products includes latex thread, natural rubber gloves, concentrated natural latex rubber, standard rubber for aircraft tyres, and rubber woods.
The deal is conducive to enhancing profitability, as Aidefu is a notable enterprise within the domestic latex mattress industry, thus providing a strong guarantee for Hainan Rubber to develop its own brand of latex products and demonstrates Hainan Rubber’s business expansion/extension along the supply chain.