AVIC Electromechanical Systems Co., Ltd. ("AVIC EM"), a leading supplier of aerospace and automotive systems, acquired 100% of the shares in Kokinetics GmbH ("Kokinetics"), a major developer and manufacturer of automotive seat and gear components, from Endurance Capital AG and the Executive Managing Group AG (“EXMAG”). The transaction closed May 30, 2014.
The acquisition marks a logical step in the evolution of both companies. It will open up new market opportunities where the combined business will cater for the needs of a global customer base. AVIC EM will rely on the existing management team and employees of Kokinetics and continues to market the company’s innovative solutions under the Kokinetics brand.
A PwC M&A team from China and Germany identified and developed the deal opportunity and introduced the parties. PwC M&A acted as exclusive financial adviser to AVIC EM.
AVIC EM is a subsidiary of Aviation Industry Corporation of China, a Global Fortune 500 enterprise ranked 212 in 2013. AVIC EM operates in the electromechanical industry. With 28 subsidiaries including 4 publicly listed companies and more than 70,000 employees, AVIC EM is a leading manufacturer and supplier of aviation electromechanical systems, automotive and vessel parts, special vehicles as well as power and electronic products. In 2013, AVIC EM's sales exceeded EUR 3.6 billion.
Kokinetics develops and produces mechanical seating and transmission systems for the global automotive industry. The company operates two major production sites in Germany and the Czech Republic. Sales are expected to reach EUR 57m in 2014.
Endurance is an industrial holding focused on the development of underperforming German and Austrian mid cap companies. Due to their profound management buy-in and buy-out expertise, Endurance Capital AG successfully restructured companies from different industries.
The PwC M&A team with members from PricewaterhouseCoopers Consultants (Shenzhen) Limited, China, and PricewaterhouseCoopers AG Wirtschaftsprüfungsgesellschaft, Germany, acted as the exclusive financial adviser to AVIC EM.
PwC M&A China was led by Linda Cai (Partner, Shanghai), Chris Tan (Partner, Beijing) and Gabriel Wong (China CF Leader); Robert Xiang (Associate Director, Shanghai), Nathan Gan (Senior Manager, Shanghai), Stephan Foelsing (Senior Manager, Shanghai), Lei Guan (Manager, Beijing) and Brian Xu (Assistant Manager, Shanghai). PwC M&A Germany was led by Alexander von Friesen (Partner, Frankfurt), Martin Schwarzer (Partner, Frankfurt) and Alexander Knögel (Senior Manager, Frankfurt).
PwC employs nearly 1,000 M&A professionals all over the world, realising approximately 300 successful transactions per year. We specialise in a wide range of independent M&A services including advice on acquisitions and disposals, mergers and public takeovers as well as structured financing.
For more information, please contact Gabriel Wong (+86 21 2323 2609) or Alexander von Friesen (+49 69 9585 5487).
Partner, Co-Head Mergers & Acquisitions: Automobilindustrie, Industrielle Produktion
Tel.: +49 69 9585-5667
Dr. Alexander von Friesen
Partner, Co-Head Mergers & Acquisitions: Gesundheitswesen, Handel und Konsumgüter
Tel.: +49 69 9585-5487