Wego’s Acquisition of Rad Source

LOCATION OF TARGET

Georgia, USA

DRP ROLE

Advisor to the buyer

STAKE ACQUIRED

100%

Wego’s Acquisition of Rad Source

LOCATION OF TARGET

Georgia, USA

DRP ROLE

Advisor to the buyer

STAKE ACQUIRED

100%

About the parties

Wego Capital (“Wego”) is a PRC investment fund established by Weigao Holding Company Limited (“Wego Holding”) and Shandong State-owned Asset Investment Holdings Co. Wego Holding is the major shareholder of Shandong Weigao Group Medical Polymer Company Limited, a Hong Kong publicly listed company, and is one of the top medical device producers in China and the largest enterprise in Weihai, China.

Rad Source is headquartered in Georgia, USA. The Company produces proprietary x-ray irradiation systems which provide a safer and more environmentally sound replacement to gamma-based irradiation systems. Its customers include the world’s leading healthcare institutions, research laboratories and major biotech and pharmaceutical companies.

Rationale

Rad Source identified a significant market opportunity in China, but had no presence in the China market. Wego wanted to expand its product portfolio and help Rad Source grow in China and globally.

Deal highlights

  • The first investment by Wego Capital and the first acquisition in the US by Wego Holding and its subsidiaries.
  • Rad Source was a non-reporting public company and the acquisition was achieved via merger agreement between a Florida corporation established by Wego and Rad Source.
  • The merger agreement was signed in November 2016, shortly prior to the Chinese government issuing new restrictions on capital outflows, causing some challenges to closing.

How did DRP add value?

  • DRP introduced the project to Wego who did not previously know Rad Source and who was the only bidder from China during a sales process run by Rad Source’s financial advisor.
  • DRP’s familiarity with the target and its sell-side advisor, Woodbridge International, was highly beneficial to Wego and helped both sides run a smooth transaction.
  • DRP assisted Wego to submit a Letter of Intent (LOI) that was chosen over two competing LOIs and several other offers.
  • DRP assisted on all aspects of the transaction including valuation and due diligence, and helped Wego negotiate favorable clauses and price adjustments.
  • DRP helped Wego explain changes in China’s rules and regulations on currency exchange and outbound investment approval and was able to convince the seller and its advisors to extend the closing period without repricing or penalties.

About the parties

Wego Capital (“Wego”) is a PRC investment fund established by Weigao Holding Company Limited (“Wego Holding”) and Shandong State-owned Asset Investment Holdings Co. Wego Holding is the major shareholder of Shandong Weigao Group Medical Polymer Company Limited, a Hong Kong publicly listed company, and is one of the top medical device producers in China and the largest enterprise in Weihai, China.

Rad Source is headquartered in Georgia, USA. The Company produces proprietary x-ray irradiation systems which provide a safer and more environmentally sound replacement to gamma-based irradiation systems. Its customers include the world’s leading healthcare institutions, research laboratories and major biotech and pharmaceutical companies.

Rationale

Rad Source identified a significant market opportunity in China, but had no presence in the China market. Wego wanted to expand its product portfolio and help Rad Source grow in China and globally.

Deal highlights

  • The first investment by Wego Capital and the first acquisition in the US by Wego Holding and its subsidiaries.
  • Rad Source was a non-reporting public company and the acquisition was achieved via merger agreement between a Florida corporation established by Wego and Rad Source.
  • The merger agreement was signed in November 2016, shortly prior to the Chinese government issuing new restrictions on capital outflows, causing some challenges to closing.

How did DRP add value?

  • DRP introduced the project to Wego who did not previously know Rad Source and who was the only bidder from China during a sales process run by Rad Source’s financial advisor.
  • DRP’s familiarity with the target and its sell-side advisor, Woodbridge International, was highly beneficial to Wego and helped both sides run a smooth transaction.
  • DRP assisted Wego to submit a Letter of Intent (LOI) that was chosen over two competing LOIs and several other offers.
  • DRP assisted on all aspects of the transaction including valuation and due diligence, and helped Wego negotiate favorable clauses and price adjustments.
  • DRP helped Wego explain changes in China’s rules and regulations on currency exchange and outbound investment approval and was able to convince the seller and its advisors to extend the closing period without repricing or penalties.

TESTIMONIALS

What our clients and partners say about us

“DRP contributed a lot to our deal… we were very impressed.”

Jianglong Xing, General Manager, Wego
“Fantastic working with you. Your patience and calm was a great help throughout the process.”
Will Hartman, President and CEO, Rad Source
“DRP did a great job and we were blessed to have strong professionals on both sides.”
Bob Murphy, Managing Director of Woodbridge International (sell-side advisor)

TESTIMONIALS

What our clients and partners say about us

“DRP contributed a lot to our deal… we were very impressed.”

Jianglong Xing, General Manager, Wego
“Fantastic working with you. Your patience and calm was a great help throughout the process.”
Will Hartman, President and CEO, Rad Source
“DRP did a great job and we were blessed to have strong professionals on both sides.”
Bob Murphy, Managing Director of Woodbridge International (sell-side advisor)

CASE STUDIES

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CASE STUDIES

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