Regal Group, an Arizona-based company with investments in the Chinese wine market, announced Thursday that it has entered into a letter of intent to purchase UHF Logistics, a China-based developer of RFID solutions.
In a statement, Regal Group said that move was part of its goal to create new value for its shareholders and that it’s looking to establish a “dominant position” in the Chinese RFID industry.
"Last month we announced our intent to create new value for our shareholders in 2010 by acquiring new businesses in the technology, automotive or pharmaceutical industries. We believe we've found the perfect fit with UHF," said Regal President Eric Wildstein. "The combination of an improving global economy with renewed focus on operational efficiencies bodes well for Regal with our potential acquisition of an emerging company in the RFID industry. We anticipate that the Chinese RFID market will continue to see consistent, gradual growth in the coming years due to the efforts of the Chinese government to encourage its expansion."
According to research from IDTechEx, the global market for RFID solutions grew to $5.56 billion in 2009. In East Asia, spending on RFID technology reached $2.7 billion in 2007, of which $1.9 billion was spent in China.