SAF-Holland has entered into a definitive share purchase agreement for it to acquire 80% equity of Corpco Beijing Technology and Development Co. In a first step a joint venture will be formed with a pull option regarding the remaining 20% of shares.
With revenues of around 18 million Euros in 2012 and 180 employees Corpco is a producer of commercial vehicle suspensions systems in China. The acquisition will expand the presence of SAF-Holland's Business Unit Powered Vehicles Systems into the Emerging Markets, especially in China.
Both companies will combine their resources to provide continuous product improvements and new technologies across the commercial vehicle range in China and certain export markets.
Corpco Beijing is a Chinese company engaged in the production and sale of suspensions for the coach and bus markets in China.
The acquisition is financed by the proceeds from the capital increase in December 2012 and from the bond which was issued in October 2012.
The transaction is subject to regulatory review and approval and customary closing conditions. The closing of the transaction is expected in the fourth quarter of calendar year 2013.