HAIKOU, China—Hainan Rubber Group, a leading natural rubber producer in China, will acquire an 80 percent stake in mattress and pillow maker Aidefu Latex Products.
The acquisition, Hainan said in a news release, will require an investment of around $53 million that ultimately will "bolster our company's development of own-label latex products." The company also noted that the move is a strategic investment in the expansion and extension of its supply chain.
Headquartered in Yangzhou, China, Aidefu was founded in 1994, and claims to be one of Asia's largest rubber products makers with 600 employees and two manufacturing facilities—inYangzhou and Chuzhou.
In 2018, Aidefu recorded $5.4 million net profit, up 126 percent from 2017. Revenue rose by 15 percent to $57.5 million.
The company's net assets at the end of 2018 were valued at around $29 million.