UEI to Sell Gemstar for $48MThursday, October 6, 2016
A Hong Kong subsidiary of Santa Ana-based Universal Electronics Inc. has agreed to sell Gemstar Technology Co. Ltd. for about $48 million in cash.
C.G. Development Ltd. in Hong Kong agreed to sell its shares in Gemstar Technology in Panyu, China, to Guangzhou Junhao Investment Co. Ltd.
C.G. Development makes remote controls for televisions. Gemstar Technology makes electronics components for original equipment makers, which usually rebrand products for sale to customers. Guangzhou Junhao is a publicly listed real estate developer in Guangzhou, China.
C.G. Development chose to sell Gemstar Technology after parent company Universal Electronics decided to move operations from the Gemstar location to newer facilities in other regions of China, which have more stable labor costs.
It may take 28 months to complete the transaction while Universal Electronics transfers production away from Gemstar’s location.
Universal Electronics reported a $29.2 million profit on revenue of about $602.8 million for the year ended December 2015. It employs 2,309 companywide.