ZHENGZHOU, China and HONG KONG — Zhengzhou Coal Mining Machinery Group (ZMJ), an industrial group that produces auto components and coal mining machinery, and China Renaissance Capital Investment (CRCI), a private equity firm, have announced that relevant parties have entered into a binding agreement to acquire Robert Bosch GmbH's (Bosch) Starter and Generator business (SG).
The transaction is expected to significantly accelerate SG's growth in North America and China, the world's largest automotive market, as well as maintain SG's market position in Europe.
"ZMJ and CRCI are ideal partners for our SG business," said Dr. Rold Bulander, chairman of Bosch's Mobility Solutions business sector and member of the management board. "The combination of ZMJ's longstanding manufacturing experience and local know-how paired with CRCI's financial expertise will enable SG to significantly accelerate its technology development and expand its business, particularly in China."
SG has 16 locations in 14 countries, including in Germany, China, Brazil, Hungary, India, Mexico, South Africa, Spain and the U.S.
"This acquisition is a significant step towards realizing our goal of becoming a global leader in the auto components sector," said Chengyao Jiao, chairman of ZMJ. "It also marks the beginning of an exciting new partnership with SG and all of its stakeholders. We are looking forward to welcoming the talented employees and management of SG — the foundation of this long-standing business — to the ZMJ family. We also look forward to upholding SG's truly customer-centric approach. We are committed to working closely with SG's management to take starters and generators to the next level."
SG's starters and generators business is a world-wide leader in the field of automotive energy supply with a product portfolio that includes high-efficiency generators and starter motors for petrol and diesel engines as well as the economical and CO2-reducing start-stop and hybrid systems.
"This partnership is a fantastic outcome for SG and all our employees. ZMJ and SG are highly complementary businesses," said Dr. Urlich Kirschner, president of SG. "ZMJ is fully aligned with our business strategy and through our partnership we will be well placed to expand our opportunities and accelerate our growth."
The transaction is subject to closing conditions and customary regulatory approvals.