Deal Announcement 04/16: Industrial Products
PwC M&A acted as exclusive buy-side financial advisor to Kaishan on the acquisition of 95.5% of the shares in LMF Unternehmensbeteiligungs GmbH, a leading Austrian manufacturer of compressor systems
The Deal
Zhejiang Kaishan Compressor Co., Ltd. (Kaishan), an Asian leader in screw compressors, acquired a stake of 95.5% in LMF Unternehmensbeteiligungs GmbH (LMF), headquartered in Leobersdorf, Austria, from the German based Private Equity firm HQ Equita.
By acquiring LMF, Kaishan will be able to combine its screw compressor business with LMF’s complementary expertise in high pressure piston compressors, promising innovative products and systems and a comprehensive, global service network.
The PwC M&A teams from China and Germany acted as exclusive buy-side financial advisor to Kaishan on the entire buy-side process. PwC M&A assisted on the bid proposals, deal structuring as well as on the commercial terms of the share purchase agreement. The transaction gives testimony to our ability to present outbound opportunities to Chinese clients and to provide effective cross border M&A-advice.
PwC also provided financial due diligence and tax due diligence services.
Leobersdorfer Maschinenfabrik GmbH
LMF is the leading Austrian compressor manufacturer and has over 60 years of experience in designing and assembling compressors, such as high-pressure piston compressor systems for air, natural gas as well as technical and industrial gases, with FY2015 sales of €36 million. LMF is the global market leader in off-shore exploration compressors.
Kaishan
Kaishan was established in 1956 and listed on the Shenzhen Stock Exchange (ticker: 300257), with a market value of Rmb 14.2 billion. Kaishan is the world’s largest manufacturer of rock drillers, as well as Asia’s No. 1 and the world’s No. 3 compressor manufacturer.
PwC
The PwC Corporate Finance teams in China and Germany acted as exclusive financial advisor to Kaishan and the PwC Transaction Services team as well as the PwC Tax team assisted in financial due diligence and tax services respectively.
The global PwC network is a worldwide association of independent auditing and consulting companies which together employ more than 195,000 employees in 157 countries. Our global network comprises nearly 1,550 M&A professionals all over the world, realizing approx. 390 successful transactions per year. We specialize in a wide range of independent M&A services including advice on acquisitions and disposals, mergers, public takeovers, privatizations as well as structured financing.
The PwC Corporate Finance team in Germany and China acted together as an exclusive financial lead advisor to Kaishan. The engagement team from China included Linda Cai, Gabriel Wong, Stephan Fölsing, Chris Wang, Crystal Cao, Simona Liu and Martin Schwarzer, Wilfried Böckmann, Adrian Schlegtendal and Johannes Bock from Germany.
