King & Wood Mallesons (KWM) advises Chinese technology group Shenzhen Kaizhong Precision Technology Co Ltd. (Kaizhong) on the acquisition of smk systeme metall kunststoff GmbH & Co. KG (smk).
Kaizhong, headquartered in Shenzhen, China, is a global manufacturer of precision parts and components for engines and electrical control units. The company’s product portfolio includes a range of components, such as commutators, connectors, bus bars, slip rings, fibre-proof elasticity modules, lightweight components and multi-insulated wires. Its products are used among others in the automotive, aviation and electrical industries, as well as in the office, building services and medical technology sectors. The group also includes Kaizhong Vogt in Reutlingen, which was acquired in 2016. The shares of the Chinese family company Kaizhong are traded on the Shenzhen Stock Exchange.
smk, founded in 1950 and based in Filderstadt, is a family-owned company and one of the established solution providers for the automotive industry (OEM and Tier 1 suppliers) and other sectors. The company has around 470 employees at its production sites in Filderstadt and Berga. smk’s products include components for powertrain technology, control systems and industrial applications for national and international customers.
The acquisition of smk serves to expand the European business and strengthen Kaizhong's international activities. After the transaction has been closed, smk will continue as an independent company within the Kaizhong group. The deal is subject to regulatory approval.
Hui Zhao comments: "We are very pleased to have advised Kaizhong on its acquisition of another company in Germany. Once again, the strength of our Frankfurt KWM team contributed significantly to complete successfully this China outbound investment. We are able to offer an exceptional service as we not only offer first-class legal advice, but also take into account the special cultural aspects. This enables us to support the client at many different levels.“
Advisors Shenzhen Kaizhong Precision Technology Co. Ltd.:
King & Wood Mallesons, Germany
Dr. Sandra Link (partner, lead), Hui Zhao (partner, lead), Dr. Tilmann Becker (counsel), Christian Ostermöller (counsel), Dr. Johannes Reitzel (counsel), Xia Li (associate), Floris Schilling (associate), Dr. Laura Schumann (associate), Dr. Katrin Thoma (associate), Heling Zhang (PSL, all Corporate/M&A)
Daniel Ehret (partner, Finance)