Shanghai Air Gun Factory, the oldest Air Gun Factory in China, sold 50% shares of its subsidiary to Cybergun, the world leader in recreational shooting.
Cybergun announces the acquisition of 50% stake in Shanghai Gongzi Machinery Manufacturing Co. Ltd, a subsidiary of Shanghai Air Gun (SAG). The acquisition, which should be ratified soon by the Chinese authorities, will be conducted in two stages: Cybergun plans to acquire 33% stake immediately and have an option on additional 17% exercisable over the next two years.
For over 50 years, SAG has a reputation for its range of rifles and pistols driven by compressed air. SAG has launched its new products successfully in many countries like the United States, Europe, Africa and the Middle East, producing over 300,000 pieces per year. The company has 300 employees and a plant covers an area of 20,000 square meters next to Shanghai.
This vertical integration is a unique strategic opportunity for the company to benefit from its own production plant in China to produce and export its products with Chinese government approval. The acquisition of 50% of SAG Chinese factory gives Cybergun group new strengths and enormous potential for growth.