Sigma-Aldrich Expands Presence in China
Sigma-Aldrich Corporation announced that it has expanded its presence in the People's Republic of China (PRC) to better and more directly serve customers throughout the country and establish a Company-owned base for future growth. The Company has established a Wholly Foreign Owned Enterprise (WFOE), Sigma- Aldrich (Shanghai) Trading Co.; acquired Beijing Superior chemicals and Instruments Company Ltd., its primary distributor in the PRC; increased the size of its administrative offices in Shanghai to accommodate the expanded organization; and opened a leased transit warehouse in the PuDong area of Shanghai.
The retention of all 78 employees of Beijing Superior -- established in 1998 to supply research products direct to end user customers across the PRC from its three locations in Shanghai, Beijing and Guangzhou -- will increase Sigma-Aldrich's employee base in China nearly tenfold to 87 employees. Because 75% of Beijing Superior's annual revenues of roughly $22 million have been of Sigma-Aldrich products, the acquisition will not have a material immediate impact on the Company's PRC sales. The acquisition is expected to help the Company meet its growth goals over the next several years and to be neutral to mildly accretive to earnings in 2006, with no initial charges. Terms of the purchase, which were not disclosed, were paid in cash.
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