By the end of 2018, AZESk, one of the nation’s leading building materials suppliers, will sell its Arizona business to the Chinese company China Materials Technology (CMTS), the company announced Wednesday.
The deal is valued at $8 million and includes $1.8 million in cash.
The company will continue to operate as a wholly-owned subsidiary of Chinese firm China Materials, according to a statement.
China Materials was founded in 2009 by Chinese entrepreneur Wang Hao.
The sale comes as the company prepares to expand its Arizona operations, with the company now providing materials for Arizona homes, schools, universities, and hospitals.
The acquisition also expands the company’s U.S. operations, which it already has an office in the Phoenix metro area.
In 2017, the company said it was in talks with several potential buyers, but in August, the Arizona Commerce Commission voted unanimously to approve a $4.9 million offer from Chinese consortium group China Properties Group.CMTS was founded by China Construction Group in 2014.
In September, the California-based company announced it was launching a new Arizona manufacturing facility.
The company plans to build and sell its existing Arizona facilities to other builders, including the Arizona City Building Materials and Arizona Building Materials Group.