L & L Energy, Inc. (NASDAQ: LLEN) announced that it has acquired owner-operated coal sales company GuangYeh Coal Sales Co.
As quoted in the press release:
GuangYeh, an owner-operated sales company, has historical annual coal sales of 68,000 tons to various steel factories in Yunnan Province. Sales have been on a cash-at-delivery basis. Lacking the resources to expand, and recognizing L&L’s unique platform and infrastructure, GuangYeh rolled its entire business, sales orders, customer base, and staff into L&L’s Tai Fung subsidiary in Kunming in August 2012. The owner of GuangYeh joins the L&L’s sales team, and GuangYeh’s coal wholesale license will be sold. With L&L’s brand name and infrastructure, the acquired operation is expected to grow 250% to 180,000 tons in the first year. Under the terms of the agreement, GuangYeh’s former owner and staff can receive a performance bonus when sales and profit reach a predetermined target.
Dickson Lee, L&L’s Chairman & CEO, commented:
The acquisition of a sales-focused company such as GuangYeh is an effective way to expand our business. The transaction bolsters our coal sales and logistical personal and is in line with our growth plan. As a part of strategy to expand our sales and distribution business, we intend to acquire other coal sales companies, bringing in additional sales and profits to our operations.