Winner Medical (300888.SZ) will spend $120 million to acquire 75.2% of GRI's shares, filling the overseas production capacity gap.

Winner Medical (300888.SZ) announced that in order to create a one-stop solution for global medical consumables, improve global production and logistics layout, establish on-site operational capabilities in the United States and Europe, enrich product lines, and strengthen research and development capabilities, the company has acquired 75.2% of the equity of Global Resources International, Inc. ("GRI") in cash, corresponding to a transaction value of approximately 120 million US dollars. It is reported that GRI is a global medical consumables and industrial protective enterprise headquartered in Georgia, USA, with revenue exceeding 150 million US dollars in 2023. In terms of revenue by region, approximately 70% comes from the United States, 20% from Europe, and 10% from Asia. In terms of business classification, approximately 55% of revenue comes from medical consumables sales, 20% from industrial protective products, and 25% from other contract processing. Its main products include surgical packs, gauze, sheets, containers, surgical gowns, and industrial protective clothing. GRI's production bases are located globally, including in China, the United States, Vietnam, and the Dominican Republic, with a total production area exceeding 80,000 square meters. It also has sales and logistics layouts in the United States and Europe, with a total storage area exceeding 70,000 square meters. On September 20, 2024, the company completed the delivery procedures for the equity of GRI. According to the agreement, the company has paid the full transaction value of approximately 120 million US dollars at once. GRI has multiple medical consumables and industrial protective products production and logistics bases in overseas countries such as the United States, Vietnam, and the Dominican Republic. This acquisition directly fills the gap in the company's overseas production capacity and meets overseas customers' demands for diversification of the supply chain risk. Compared to building capacity on its own, this greatly shortens the construction period and reduces related construction and operation risks. In terms of synergy in the future, the factories in Vietnam and the Dominican Republic of GRI will bring labor cost advantages to the company, while the factory in the United States will bring advantages in local market. The company will also share its own intelligent manufacturing capabilities and digital systems with GRI to create sustainable new productivity together.