American International to buy Shumate unit

American International Industries Inc. has agreed to purchase a subsidiary of Shumate Industries Inc. for about $6.7 million.

The Kemah-based holding company will buy Shumate Machine Works Corp. which will become a wholly owned subsidiary called Shumate Energy Technologies Inc.

The deal is scheduled to close Oct. 1,

Shumate currenly operates out of a 30,000-square-foot manufacturing facility in Conroe, and will continue to manufacture select components for Hemiwedge Valve Corp. in a strategic manufacturing alliance instant payday loan.

Its parent, Shumate Industries (OCTBB: SHMT) is an energy field services company.

After the sale is complete, HVC will be the remaining subsidiary of Shumate Industries (OCTBB: SHMT), according to American International.

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