China Education Resources
China Education Resources Inc. (CER) is a provider of products and services to China's kindergarten to grade 12 market. CER's traditional business has been in textbooks, selling over 15 million books in 2004.
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China Education Resources buys majority stake in education products distributor for C$1m
China Education Resources Inc said its Chinese subsidiary Today's Technology and Culture Ltd has entered into a definitive agreement to purchase a 60 percent stake in Yu Cheng Yuan Consulting and Service Ltd, a distributor of education products in China for C$1 million payable in 2,860,000 CER shares.
One third of the purchase price will be paid up front with the balance paid on the first and second anniversary of the closing date, contingent upon YCY generating an annual net profit of C$324,000.
In the year to end-December 2008 YCY reported unaudited revenue of C$4,474,000 and net profit of C$315,000.
The acquisition of YCY provides CER with a strong presence in a number of important markets. YCY has sales offices in seven Chinese provinces and direct contact with 150 city education authorities. The executives of YCY have more than 15 years of sales experience in the educational distribution business and each of the sales team has an average of five years experience, CER said.
