Dragon Jade to acquire outstanding share capital of China Management Services

China’s premier products and services provider Dragon Jade International has entered a definitive agreement to acquire 80% of the issued and outstanding share capital of China Management Services.

The parent company of the Montrose Group, China Management Services is a fine wine importer and distributor in mainland China, Hong Kong, and Macau.

As per the agreement, Dragon Jade has agreed to purchase the issued and outstanding share capital for HK$2m ($254,798) in cash and 100,000 in restricted common shares of Dragon Jade.

Dragon Jade’s CEO Dr Steve Lai said: “We are excited by the long-term growth prospects of this acquisition.

“Montrose Group’s customer base of five-star hotels, high-end restaurants, high-net-worth individuals, and the growing affluent middle class adds an ideal distribution channel for our core health supplement products to our target markets.

“In addition, our successful distribution network and strategies in Greater China will bring Montrose Group’s products to a wider geography.”

Established in Beijing, Montrose Group claims to have introduced exclusive wine brands in the country. Its products are distributed to more than 1,500 active on-trade and off-trade clients in sectors ranging from food and beverage private membership clubs, hotels, supermarkets and retail wine stores. In 2016, Montrose Group revenues touched $6.4m.

Dr Lai further added: “To help the Montrose Group’s revenues reach new highs, we will expand its market presence by leveraging our strong localised distribution network across Greater China, including those of local, Chinese individual distributors and corporate clients.”

Last year, Shanghai, Beijing, Guangdong, Jiangsu and Zhejiang in China were reported as one of the leading wine regions in the country that imported a total $2bn of wine.

Dragon Jade intends to focus on these regions and expects to generate $10m in revenue in the first year of the acquisition with net margins of 20%.