ARACON acted as the exclusive M&A advisor to Shanghai Baolong Automotive Corporation (Baolong Automotive) in the acquisition of a 70% stake in Austria based Modular Molding Systems GmbH (MMS).
Baolong Automotive is listed at the Shanghai Stock Exchange and is a world leading automotive supplier for a wide range of products. Baolong Automotive has a strong focus on sensor systems, particularly tire pressure monitoring systems (TPMS). As a technological leader, MMS focuses on engineering modular production systems for parts made of metal/ plastic hybrid components. The company’s product range includes highly efficient linear transfer systems, characterized by its compact design compared to conventional systems. One of the main application areas of MMS’ machinery are parts for sensor systems, for example the production of sensor housing.
The strategic rationale behind the transaction for Baolong Automotive was to insource the production of special components for their own sensors and to introduce MMS’ revolutionary technology to other potential customers in the Chinese automotive industry.
Based on deep transaction expertise, ARACON provided strategic buy-side advisory to the acquiror throughout the entire transaction process. With profound knowledge in the machinery as well as automotive supply industry, ARACON assisted Baolong Automotive in the strategic and financial evaluation of the transaction, conducted commercial viability checks and participated actively in the SPA negotiations. ARACON engaged its teams in China and Austria in a concerted effort and the transaction was executed in a swift manner. ARACON worked alongside Deloitte Austria, who acted as the legal advisor to the buyer.