China’s Avic buys Hilite International with $644M Deal
China’s Avic buys Hilite International with $644M Deal
China’s Avic Adds to Auto Parts M&A with $644M Deal
London-headquartered middle-market private equity firm 3i Group plc says it has sold its portfolio company Hilite International, a global supplier of highly engineered automotive engine and transmission components, to Chinese state-owned aerospace and industrial company Aviation Industry Corporation of China (AVIC), according to an announcement made by 3i.
During 3i’s ownership, Hilite accelerated its expansion into China, the fastest growing automotive market in the world. China is expected to contribute more than 15% of total sales to Hilite in 2014, up from very limited revenue generation in 2011.
Under seller 3i’s ownership, Hilite expanded in China — the fastest-growing car market in the world
n the latest car parts deal, Avic Electromechanical Systems Co. Ltd. has purchased Hilite International from private equity firm 3i Group plc for €473 million (U.S. $644.1 million).
The target supplies automotive engine and transmission parts for passenger cars and commercial vehicles. Hilite is headquartered in Marktheidenfeld, Germany, and has offices and production plants in North America, Europe and Asia. The company’s U.S. locations include a sales and research development center in Orion, Michigan, and development and production sites in Whitehall, Michigan, and Dallas.
3i invested in Hilite in 2011. Under the PE firm’s ownership, Hilite invested in research and development and expanded in China, which is the fastest growing automotive market in the world. 3i made a 2.1x return on its approximately $281 million investment, the company says.
The buyer is a Chinese company that focuses on manufacturing seat-adjustment components to the car market.
Morgan Stanley Bank AG served as 3i’s financial adviser, while Willkie Farr & Gallagher LLP provided legal advice.
The transaction follows a long line of car-parts deals, including AGM Automotive LLC’s purchase of Chicago Miniature Lighting LLCin May, and Z Capital partners LLC’s purchase of MSD Performance Groupin December. For more on the sector, see “Winners of the Auot Aftermarket.”
Deal done.
Henniges Automotive acquired by China’s AVIC Automotive
Automotive sealing and anti-vibration component supplier Henniges Automotive Holdings Inc. has been acquired by China’s AVIC Automotive Systems Holding Co. Ltd.
Terms of the deal, announced Wednesday, were not disclosed.
Bloomberg News reported earlier this year that AVIC could pay about $1 billion for the supplier based near Detroit in Auburn Hills, Mich.
In a news release, Henniges called the deal “one of the largest acquisitions by a Chinese company of a U.S.-based automotive manufacturing company in history.”
In 2011, General Motors sold steering supplier Nexteer Automotive Corp. for $440 million to a Chinese joint venture that included AVIC. A123 Systems LLC was acquired out of Chapter 11 bankruptcy in 2013 by Chinese conglomerate Wanxiang Group Corp. for $256.6 million.
Henniges CEO Douglas DelGrosso said price was the primary consideration in selling, but also transferring ownership to a strategic buyer away from another financial buyer was attractive to management.
Henniges’ previous owners, Connecticut private equity firm Littlejohn & Co. acquired the supplier in 2010 from Chicago private equity firm Wynnchurch Capital Partners LP.
AVIC will not consolidate any operations with Nexteer, DelGrosso said.
AVIC is a subsidiary of Beijing-based Aviation Industry Corp. of China, a nearly $50 billion government-owned aerospace and defense conglomerate.
“We are encouraged about this acquisition by AVIC Auto, which will provide the capital and financial backing needed to sustain and grow our business and ensure that the Henniges heritage, culture and name continue to thrive into the future,” Delgrosso said in a statement. “We are confident that AVIC Auto ownership will give Henniges Automotive further opportunities for continuous advancement in technology and solutions that drive positive results for our customers.”
Henniges reported revenue of $824.8 million in 2014, up from $611 million in 2011.
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中国在美国规模最大汽车类并购完成
日前，中国航空工业集团（AVIC）完成了对美国汽车零部件供应商瀚德汽车控股公司（Henniges Automotive Holdings Inc）的收购，创下历史上中国企业对美国汽车零部件公司的收购规模之最。
交易金额或达10亿美元
9月9日，瀚德公司发布公告称，确认被中航汽车系统控股公司（AVIC Automotive Systems Holding Co。 Ltd。）收购。不过在公告中并未给出具体的合同条款。早先外媒称中航为收购瀚德或斥资49.7亿元人民币，约合8亿美元。而今年年初彭博社则披露，交易金额可能达到10亿美元之多。
瀚德总部位于密歇根州奥本山，在北美、欧洲和中国等地总计拥有6，500多名员工，其产品包括密封条、抗振动系统、橡胶组件等。在中国分公司的客户包括上海大众以及一汽，2014年营业收入达到8.248亿美元，而2011年为6.11亿美元。
该公司进入新世纪以来被几次转手。2010年，康涅狄格州私募股权投资公司利特尔约翰公司（Littlejohn & Co。）掌控从Wynnchurch Capital Partners LP手中收购了瀚德，本次瀚德再次易主转入中航旗下。
2011年中航旗下太平洋世纪汽车系统从通用汽车公司手中收购了耐世特汽车集团有限公司（Nexteer Automotive GroupLtd。），也是中国收购美国汽车类公司案例规模居前者。不过瀚德CEO Douglas Del Grosso表示，被中航完成收购后不会与耐世特进行整合。
中国在美规模最大汽车类并购
在本次公告中，瀚德表示这是历史上中国企业对美国汽车类公司（含整车公司和零部件供应商）规模最大的一起收购，证实了之前外媒的报道。
8亿美元或10亿美元确实可称得上是中国在美规模最大汽车类并购案例。近年来，排在第二位的正是上文所提及的中航旗下太平洋世纪汽车收购耐世特，交易金额4.40亿美元。而2013年万向集团吞并电池制造商A123 Systems公司，则以2.566亿美元列第三。当时A123按照美国破产法第十一条进行破产保护，被万向收购。
Del Grosso表示，收购中交易价格是首要考虑，不过将公司转手给一家战略收购者而非一家金融公司，对管理层来说也颇具吸引力。
After divesting itself of auto-related companies like Hafei, Chang’he and Dong’an Engine, it is curious to see Avic get back, and serious, in automotive.