SHANGHAI -- A wholly owned subsidiary of Universal Scientific Industrial has signed an $11.3 million deal with a Chinese electronics company to acquire its manufacturing division in Poland.

Universal Global Electronics entered into an equity transfer agreement with ChungHong Electronics (Suzhou) Co., intending to acquire its entire 60% stake in its Polish subsidiary, Chung Hong Electronics Poland for RMB 78 million ($11.3 million).

Under terms of the deal, UGE can acquire the remaining 40% at 10 times the static P/E ratio that within six months following the audit of Chung Hong's financial statement for fiscal 2020.

ChungHong EMS has a 930,000 sq. ft. campus in Wroclaw, Poland, where it employs 2,600 fulltime and contract workers, according to the CIRCUITS ASSEMBLY Directory of EMS Companies.

USI is the world's 13th largest EMS/ODM, according to the CIRCUITS ASSEMBLY Top 50.

USI sees the Polish operation as central to its plans to expand its automotive electronics business, which made up 5.65% of the company's total revenue in 2017. The company plans to first deliver automotive electronics products in Poland, and then roll out its industrial and server businesses in the medium- and long-term.

In a press release, USI said, "After completion of the equity acquisition of Polish company, [USI] will have a production base in Europe to expand its footprint in the Europe so as to build a much more complete global supply system. In the context of intensified trade war between China and the United States, the completion of merger and acquisition of Polish company is of symbolic significance to the business expansion and accelerated development of USI."

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