TABY, SWEDEN -- Mycronic has signed an agreement to acquire Shenzhen Huan Cheng Xin Precision Manufacture, an OEM of screen printers and pick-and-place machines.

The deal gives Mycronic a firmer foothold in the lucrative Chinese assembly market.

The transaction is expected to be finalized in the fourth quarter of 2021. Other terms have not been disclosed.

Shenzhen-based Shenzhen Huan Cheng has about 120 employees and headquarters and annual revenues of almost SEK 100 million ($11.3 million).

 Mycronic said screen printers account for 80% of Shenzhen Huan Cheng's sales and placement machines the remaining 20%. China is the company’s dominant market, accounting for 95% of sales.

”With this acquisition we strengthen and broaden [our] product portfolio and are able to offer a more complete and attractive solution to our customers,” said Ivan Li, senior vice president, High Volume, Mycronic.

Initially 70% of the shares will be acquired. The remaining 30% can be acquired in 2025 in accordance with a pre-defined earnings multiple.

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