Ningguo, China — China’s Zhongding Sealing Parts Co. Ltd is buying 100 percent of shares in German injection moulder Wegu Holding GmbH for $107.4 million (€95 million) in cash, said a company announcement on 11 Feb.
According to Zhongding, the payment is expected to be wired to DMB 1. Invest GmbH & Co. KG, which owns 90 percent of Wegu’s publicly listed shares, by 31 March. Wegu managing director Horst Zimmerman and Equitrust Beteiligungen GmbH each hold 5 percent.
By the end of September 2014, Kassel-based Wegu’s net assets reached $30.8 million, with $44.2 million of total assets and $13.4 million of total liabilities, Zhongding reported.
Wegu, founded in 1949, specializes in rubber and plastic processing for vibration control and acoustics for the auto industry, with its market covering brands such as BMW, Daimler, Audi and Land Rover.
Zhongding expects the deal to advance its technologies in automotive noise reduction systems, especially in electric vehicles and help it enter the supply chain for premium brand auto makers.
The deal is pending Chinese government approval.
Zhongding most recently became the majority owner of German automotive sealing specialist Kaco GmbH + Co. KG in July 2014.