Yangzhou CIMC Tonghua Special Vehicles Co. Ltd.
Recently, CIMC announced that the group has just completed a wholly-owned acquisition of the British Retlan Group at a price of 91.7 million pounds (800 million yuan). The acquisition target is a company with a focus on the production of semi-trailers of all types. It is a leading company in the UK and has two subsidiaries, SDC and MDF. It is reported that this should be the largest acquisition of the Semi-Trailer industry in the world in the past ten years. With this acquisition, CIMC will successfully enter the British semi-trailer market and further expand into the European market, and continue to maintain its position in the global semi-trailer industry. Leading position.
Acquisition of high-quality assets, annual income of 198 million pounds, profit of 14 million pounds It is understood that the implementation of the acquisition is the second largest segment of CIMC Group, CIMC Vehicle Group, Group General Manager Li Guiping introduced, CIMC Group since 2015 6 In the month, he started to contact Retlan, which has a willingness to sell. The company is located in County Antrim, Northern Ireland. It also has a production plant in Nottinghamshire, England. It mainly produces semi-trailers of various types, such as side curtains and flatbeds. Thousands, the market share with an advantage in the UK market, is one of the largest manufacturing companies in the region. The business is highly consistent with CIMC vehicles, and its dominant position in the UK market just makes up for the short-term CIMC semi-trailer in the UK market. Board, thus entering the acquisition vision of CIMC.
What is even more commendable is that CIMC vehicles, through the recruitment of world-class tax and operations consulting companies such as Deloitte, GTM, and McKinsey, found that this is a company with high-quality assets and a record of consecutive years of profitability. In the last fiscal year, the Retlan Group also achieved a revenue of 198 million pounds, of which a profit of 14 million pounds. Prior to the acquisition, most of the shares of the Retlan Group were held by JJ Donnelly and his family members, and CEO Mark Cuskeran also had a significant portion of the shares.
Why are such a good company sold? Li Guiping always said that this is a rare opportunity. The family shareholder who is the major shareholder is about to retire, the heirs are unwilling to take over, and selling is a good choice when it is profitable, and CIMC is in the global semi-trailer industry. The leading position makes it more reassuring to the next step of the company's development and the development of its employees. The management led by Mark Cuskeran also welcomed CIMC's shareholding. He said that this is a great opportunity for the further development of the Retlan Group. The global CIMC Group has also left a deep impression on it.
The acquisition went smoothly and the harvest was completed recently. For CIMC vehicles, this should be the highest quality overseas assets acquired in recent years. Although the acquisition amount is as much as 800 million yuan, Li Guiping always thinks it is worthwhile and judges that it will open the CIMC vehicle business. A new chapter.
The layout of the iron triangle has laid the foundation for CIMC's position in the European market. This is of great significance to the strategy of CIMC's globalization of the vehicle. It is also unusual for the CIMC Group, which is undergoing continuous transformation and upgrading, because the main market for semi-trailers is in Europe and America. According to the request of the president of CIMC Group, Mai Boliang, even though the 2015 CIMC vehicle has ranked first in the global semi-trailer with a 10% share, it does not enter the top three in Europe and America, which is not enough to be the first. The European and American markets are very important.
After the CIMC container production ranked first in the world in 1996, in order to prevent the cyclical risks of global trade, CIMC began to think about the adjustment and upgrading of the strategic sector. The road transport equipment called the Trailer (semi-trailer) that the management saw abroad was They are like "containers with wheels", which are related to the existing business of CIMC, and can overcome the drawbacks of unsafe factors such as overloading of road transport vehicles in China. Market research also shows that the market capacity in this field is near container. 4 times, the semi-trailer became the beginning of the transformation of CIMC. In 2002, after studying and studying the advanced semi-trailer technology of foreign companies, CIMC officially announced its entry into the road transport vehicle industry.
I tried to prove that the semi-trailer technology is far from being as simple as putting the wheels on the container, but CIMC began to run wild in this industry, from tens of millions of sales in the first year to 2010, the world leader with annual sales of 16.6 billion. Status has become the largest segment of CIMC except for containers. In the case of global overcapacity, CIMC contracted in time, focused on quality growth, and remained profitable in a loss-making market. In 2015, it still ranked first in the world with revenue of 12.8 billion. In the process, CIMC has always developed with the concept of global operation and local wisdom, close to local demand, entered the United States, Europe and emerging markets, and launched a global business through a series of acquisitions. The company has become Vanguard, the most profitable vehicle of CIMC.
However, in the European market, the southwest corner of Germany, which initially laid out the European center, was once frustrated by the German-made attack. In 2014, CIMC vehicles began to change their strategy. By acquiring the Belgian company in Belgium and establishing a production base in Poland, it gradually penetrated. Within Europe, the acquisition of the Retlan Group in Northern Ireland is now completed. From a geographical perspective, these three points form a “triangular” framework, which is expected to radiate the entire European market and gradually establish the dominant position of CIMC vehicles in Europe. .
Europe, which is more differentiated after Brexit, means more opportunities. It is worth noting that CIMC’s acquisition is just at the key point of Brexit, although the outcome of Brexit is beyond the expectations of most media in the world. The CIMC acquisition team said that the results have been expected in the acquisition process. In the medium and long term, Brexit will not have a significant adverse impact on CIMC's acquisition, nor will it affect CIMC and the acquisition target. The further integration of the pace will not affect the progress of CIMC's strategy in Europe.
Li Guiping always said that in the long run, CIMC vehicles will continue to allocate resources globally. At present, the resource allocation of CIMC in Europe, America and emerging markets will greatly hedge the risks brought by exchange rate fluctuations of various countries. Set the strategies already in place. In the future, the British market, he said that he is still relatively optimistic, "even if the British pound has a 10% depreciation, it can be controlled for CIMC. In a way, this situation is also beneficial to us in the UK. Enterprises export to Europe, North Africa, the Middle East and other places."
Although Brexit will not block the determination of CIMC to deploy its European strategy, as the situation changes, tactics may need to be adjusted to adapt to the local market and require more precise market strategies. For Europe, which has previously approached the integrated market, the single company will have a wider range of radiation, and the future European market may be more differentiated. “The more differentiated market is more challenging for Chinese companies to develop overseas, and who is The ability is stronger, but the more competitive the advantage is, the so-called rich globalization experience of CIMC can find opportunities here. I am sure that opportunities are greater than challenges." Li Guiping said.
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