Press Release: GST Holdings Limited Joins UTC Fire & Security
SHANGHAI, Aug. 19 /PRNewswire-FirstCall/ -- UTC Fire & Security (UTCFS) has announced the acquisition of more than 95% of the shares in GST Holdings Limited (GST), the leading fire alarm system provider in China. UTCFS is a business unit of United Technologies Corp (NYSE: UTX).
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GST is primarily engaged in the manufacturing and distribution of fire alarm systems, fire network systems and other products such as video entry, electronic power meter and building automation systems. GST has 3,600 employees and 190 branches in China with manufacturing operations in Qinhuangdao, Shenzhen and Beijing. Revenues in 2008 were approximately $165 million (RMB 1.1 billion).
UTCFS, through its affiliate United Technologies Far East Limited (UTFE), first invested in GST in 2006, acquiring 9.9% of outstanding shares. Incremental investments were subsequently made bringing the company\'s shareholding to 29%. In July 2009, UTFE launched a voluntary general offer. UTCFS now plans to consolidate GST with its existing operations and delist GST from the Hong Kong Stock Exchange.
"We are excited about the opportunities that GST brings us in China. GST has an extensive distribution network, strong brand recognition, an experienced management team and a large customer base that has been receptive to new technologies," said William Brown, President, UTCFS. "Investment in China is an important part of our expansion strategy and we look forward to working with the GST management team to accelerate growth in the region," he said.
"GST entered the fire industry in 1993 and over the past 16 years we have focused on internationalization, industrialization and engineering. Today is an important milestone in GST\'s continued growth," said Song Jiacheng, GST Chairman. "We are confident that by joining UTCFS, we\'ll accelerate our growth and provide more opportunities for our employees."
Headquartered in Connecticut, UTC Fire & Security is a business unit of United Technologies Corp., which provides high technology products and services to the building and aerospace industries worldwide. More information about UTC Fire & Security can be found at website: www.utcfireandsecurity.com.
This release includes "forward looking statements" concerning the anticipated benefits of a transaction that remain subject to uncertainties. Important factors that could cause actual results to differ materially from those anticipated or implied in the forward looking statements include changes in anticipated or actual economic conditions and delays in integrating the acquired businesses. For information identifying other important economic, political, regulatory, legal, technological, competitive and other uncertainties, see UTC\'s SEC filings as submitted from time to time, including but not limited to, the information in the "Business" section of UTC\'s Annual Report on Form 10-K, the information included in UTC\'s 10-K and 10-Q Reports under the heading "Management\'s Discussion and Analysis of Financial Condition and Results of Operations," and the information included in Current Reports on Form 8-K.
The directors of United Technologies Far East Limited jointly and severally accept full responsibility for the accuracy of the information contained in this press release and confirm, having made all reasonable enquires, that to the best of their knowledge, opinions expressed in this press release have been arrived at after due and careful consideration and there are no other facts not contained in this press release, the omission of which would make any statements in this press release misleading.
Source: PRNewsWireUTX is in the portfolios of David Williams of Columbia Value and Restructuring Fund, Kenneth Fisher of Fisher Asset Management, LLC, David Dreman of Dreman Value Management, Dodge & Cox, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.