FOSBER SELLS 60% OF ITS EQUITY TO GUANGDONG DONGFANG PRECISION SCIENCE & TECHNOLOGY CO. LTD.
- Fosber Group has finalized a dual strategic agreement with China’s Guangdong Dongfang Precision Science & Technology Co. Ltd through a joint venture agreement in China for the joint development of Asian market opportunities and the simultaneous sale of 60 percent of its equity.
- The agreement represents an important business development deal that can guarantee Fosber preferential entry into East Asian markets and in general a strong business synergy between the two leading groups in their respective fields.
- Scouting Spa acted as financial advisor to Fosber and coordinated the cross-border transaction with a team led by partner Marco Musiani.
- PwC Tax & Legal (Parma and Milan offices) assisted Fosber as legal advisor to the transaction.
- Dongfang was assisted by Chinese financial advisor Key Wealth Capital Co. Ltd. and by DLA Piper (Milan, Rome and Hong Kong offices), which handled all aspects of legal advisory.
- Fosber is an international group active in the design, manufacture and installation of complete corrugator lines and corrugated machinery. Founded in Lucca in 1978, Fosber is a market leader in the high value-added segment in European and North American markets, thanks to patents and high-technology and innovative solutions. It achieved consolidated sales of €103 million in 2012 with a net profit of €4.6 million and has fast-growing forecast results.
Dongfang, founded in 1996 and listed on the Shenzhen Stock Exchange, is a leading industrial group in the Chinese market of machinery for converting corrugated board sheets into packaging boxes, which is positioned in the downstream production chain of the Fosber product. Dongfang achieved 2012 sales of about 40 million euros and a net income of about 6.6 million euros, and has strong growth expectations for the current fiscal year.
- “This is a strategic partner with many synergies for Fosber, which allows us to maintain full autonomy and operational continuity in Western markets where we have leadership, while we will be able to share a joint venture in China to build lines for the production of corrugated cardboard designed specifically for the Asian market,” says Ettore Bartoloni Saint Omer, president of Fosber.
- “This is a transaction with high financial and industrial significance: the agreement between two market leaders in complementary products and geographic areas with strong commercial and technological potential, offers the opportunity to create a listed world leader in automation for corrugated board with a turnover in the region of 200 mil Euros with economic and financial fundamentals of absolute excellence,” says Marco Musiani, partner at Scouting Spa.