Houlihan Lokey Advises ZMJ and CRCI

Houlihan Lokey is pleased to announce that Zhengzhou Coal Mining Machinery Group Co. Ltd. (ZMJ) and China Renaissance Capital Investment (CRCI) have acquired Robert Bosch Starter Motors Generators Holding GmbH (SG Holding) from Robert Bosch GmbH for an enterprise value of €545 million. The transaction was signed on May 1, 2017, and closed on December 29, 2017.

Founded in 1958 and based in Henan Province, China, ZMJ is the largest hydraulic roof support producer and one of the largest comprehensive coal mining machinery manufacturers in the world. It is cross-listed on both the Shanghai Stock Exchange and the Stock Exchange of Hong Kong. In 2016, ZMJ acquired ASIMCO Technologies (ASIMCO) from Bain Capital, which marked ZMJ's strategic transformation. ASIMCO Shendian, a subsidiary owned by ASIMCO, is a leading supplier of starters and generators in China. The acquisition of SG Holding is expected to generate significant synergies through combining the operations of SG Holding and ASIMCO Shendian.

CRCI is a limited liability company incorporated in the Cayman Islands. Headquartered in Hong Kong, CRCI has offices in Beijing, Shanghai, and Chengdu. CRCI is the manager of certain private investment funds incorporated in the Cayman Islands focused on investing in businesses operating in or with a strong nexus with Greater China.

Carved out from Bosch Group in 2016 and based in Stuttgart, Germany, SG Holding represents the divested starter and generator division of Robert Bosch GmbH with a history dating back to the early days of the automobile. It engages in the development, manufacturing, and sale of starters and generators as well as boost recuperation machines for passenger cars and commercial vehicles. SG Holding is a top-three player globally with a broad product portfolio and an unrivalled global footprint. It supplies to all major OEMs, including Volkswagen, Daimler, Renault-Nissan, BMW, Fiat Chrysler Automobiles, General Motors, and Ford Motor Co. SG Holding will operate under the newly created SEG Automotive brand.