(Yicai) Feb. 26 -- Jade Bird Fire’s stock price rose after the Chinese maker of fire safety systems said it will spend GBP13 million (USD16.5 million) to acquire the Firehawk alarm brand.

Jade Bird Fire [SHE: 002960] ended 5.7 percent higher at CNY14.69 (USD2) a share in Shenzhen today, still almost 40 percent down on 12 months ago.

A holding unit of the Chinese company will sign deals to acquire about 75 percent of each of the four fire alarm suppliers that own the Firehawk brand, the Beijing-based firm said after the close of trading last week.

The acquisition will help Jade Bird Fire expand to consumer products such as sensors that detect smoke, temperature changes, as well as flammable and toxic gases in a market worth almost USD10 billion. It is currently focused on corporate clients. The move will also help the firm increase its overseas market share, it added.

The four target companies are based in the United Kingdom, Canada, and the Netherlands. They sell smoke detectors, temperature sensors, carbon monoxide alarms, and fire extinguishers mainly in the UK, the European Union, New Zealand, and the United States.

For the Chinese firm, the purchase is conducive to its expansion in Commonwealth markets and should complement its existing business in Europe and North America to improve its global influence, it added. Commonwealth countries include Canada, Australia, and New Zealand.

Editor: Emmi Laine