(Yicai Global) Aug. 17 -- Idear-Hanyu Electrical Joint Stock, which sells drain pumps for household appliances, plans to acquire a Thai component maker as it looks to expand on its vast global market share.

The Jiangmen, Guangdong-based firm plans to spend USD3.3 billion to buy Seil Controls from three South Korean shareholders, it said in a statement on Aug. 15. Idear-Hanyu will pay cash to all three individuals for a 100-percent stake in the target.

The buyer makes 35 percent of the world's water pumps for home appliances, state-owned Chinese news agency Xinhua reported in April. American brand GE Appliances, which holds a 14 percent market share in the US and is owned by Chinese conglomerate Haier, granted Idear-Hanyu a superior quality performance award in 2016 for producing millions of pumps with zero defects.

"Only three suppliers in the world are at this level," Idear-Hanyu Chairman Shi Huashan told Xinhua at the time.

The target firm, based in Chon Buri, produces and distributes water inlet valves and pressure switches for appliances, the buyer's statement said. Seil is developing well and has ties with clients in resources, technologies and processes, it added.

Under the agreement, Idear-Hanyu will conduct due diligence and an audit within 45 days. It will pay 80 percent of the purchase price once that is complete, and take a 100 percent stake. The remaining 20 percent will be paid within six months after the purchase, the statement added.

Editor: James Boynton