Perlitz Strategy Group advises Chinese Zhongding Group on the acquisition of Federal Mogul Sealing Systems

Tanja Hennseler

With effect from January 01, 2016 the Chinese Zhongding Group has acquired all shares of Federal Mogul Sealing Systems, St. Priest/ Lyon, France. The seller was an affiliate of Federal Mogul Group, Federal Mogul SAS (Orleans, France).

Federal Mogul Sealing Systems is a manufacturer of gaskets for engines and transmissions for heavy trucks and commercial vehicles. The company supplies OEMs as well as the Independent Aftermarket (IAM). Customers are PSA Peugeot Citroën, Renault, Audi, BMW, Fiat, Ford, Daimler Trucks, Cummings, Volvo, Scania, Doosan and others.

With this acquisition Zhongding Group, a leading automotive Tier-1 supplier with 14.000 employees and annual sales of USD 1.3 billion, continues to strengthen its global footprint in Europe. In the last two years, the group has already acquired the vibration technology specialist WEGU, Kassel, the precision tube manufacturer Vincenz Wiederholt, Holzwickede, as well as a majority stake in KACO Group, Heilbronn (all Germany).

Under the new name “SOYLEM” (Société Lyonnaise d'Etanchéité Mécanique) Federal Mogul Sealing Systems will be managed as an independent subsidiary of Zhongding Europe GmbH, Lohr am Main, Germany. The parent company is listed as “Anhui Zhongding Sealing Parts Co Ltd” on the stock exchange in Shanghai and Shenzhen.

The completion of the company acquisition contract was subject to regulatory approval, which have now been granted. Financial terms of the transaction were not disclosed.

Zhongding Group was strategically and commercially advised by PERLITZ STRATEGY GROUP under the lead of Matthias Litschke, legally by RITTERSHAUS RECHTSANWÄLTE, under the lead of Dr. Claudia Pleßke, partner at Mann-heim office, and in tax matters by FALK & Co under the lead of Dr. Stefan Tichy, partner at Mannheim office. The same transaction team of PERLITZ STRATEGY GROUP, RITTERSHAUS and FALK & Co already advised Zhongding Group in a number of M&A transactions, such as the majority stake in KACO Group, the acquisition of WEGU Group and others.

Advisory Team Zhongding Group:
PERLITZ STRATEGY GROUP – Matthias Litschke, Manager (Lead Commercial: Commercial Due Diligence, Deal Structure, Risk Assessment, Price Negotiation).

RITTERSHAUS Rechtsanwälte – Mannheim office: Dr. Claudia Pleßke, Partner (Lead Legal: Legal Due Diligence, Corporate M&A), Dr. Andreas Torka, Partner (Corporate M&A), Anno Haberer (Antitrust Law).

FALK & Co: Dr. Stefan Tichy, Partner, auditor and tax advisor.

Perlitz Strategy Group (PSG) is an internationally operating, mid-sized management consultancy based in Mannheim, Germany. PSG specializes in corporate strategy, business development, reorganization/restructuring, sales management and innovation management. Its industry focus are the automotive, mechanical engineering, electrical and chemical industries.

RITTERSHAUS is a law firm with offices in Mannheim, Frankfurt and Munich. Mainly specialized on advising medium-sized and large companies, the emphasis of its services are corporate law with a focus on restructuring, M&A, private equity and venture capital transactions, as well as corporate financing and company and asset succession. Other fields of advisory are banking and capital market law, labor law, intellectual property law, public law and IT law.

FALK & Co has been in existence for over 70 years as an independent audit, accounting and tax advisory firm with more than 300 employees throughout 9 national offices. Focusses of the advisory services of FALK & Co. are M&A transactions as well as restructuring measures after an acquisition.

Matthias Litschke, phone: +49 (0)621-1504217
Mail: matthias.litschke@perlitz.com