Shanghai Prime Machinery and Nedschroef Join Forces
Shanghai Prime Machinery Company Limited (PMC), Shanghai, China, among the largest fasteners exporters in China, has signed a purchase agreement to acquire Koninklijke Nedschroef Holding B.V., Helmond, the Netherlands, one of the global leaders in engineered automotive fasteners. Nedschroef will benefit from an improved global reach through PMC, with a particular strength in China, while the acquisition provides PMC with a strategic entry into the high-end automotive fasteners business.
PMC is a 49.6% controlled subsidiary of Shanghai Electric Group Corporation (SEC) and listed on the Hong Kong Stock Exchange. The current owners of Nedschroef are Gilde Buy Out Partners, Parcom Capital and company management, who value the transaction at an enterprise value of EUR 325 million. After completion of the transaction PMC and Nedschroef will have combined fastener sales of over EUR 600 million.
PMC will build on Nedschroef’s intimate, longstanding relationships with leading OEM car manufacturers and suppliers around the globe and will gain a world class platform to further grow the company's fasteners division. PMC is committed to backing Nedschroef’s global expansion strategy.
Nedschroef will continue to operate independently under its own brand name. Nedschroef’s management team is excited to continue leading the development of the group within PMC. The headquarters will remain in Helmond, and all of Nedschroef’s current production locations will be maintained. Nedschroef will be the core of the global growth ambitions of PMC’s fasteners division. At the same time it will be ‘business as usual’ for customers. Also for employees there will be no changes as a result of the acquisition.
Completion of the transaction is subject to the required approvals and merger clearance. As PMC is listed on the Hong Kong stock exchange, PMC will convene a shareholder meeting with regards to the Very Substantial Acquisition procedure under Hong Kong stock exchange regulations to request shareholder approval for the transaction. Nedschroef has informed its central works council and will seek its advice prior to Completion.
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