Zhengzhou Coal Mining Machinery Group, a Chinese industrial group that produces auto components and coal mining machinery, and CRCI (China Renaissance Capital Investment), a private equity firm, have announced that they have entered into a binding agreement to acquire Robert Bosch GmbH’s starter and generator (SG) business. The transaction is subject to closing conditions and customary regulatory approvals.
Bosch’s starters and generators product portfolio includes high-efficiency generators and starter motors for petrol and diesel engines as well as start-stop and hybrid systems. SG has 16 locations in 14 countries, including in Germany, China, Brazil, Hungary, India, Mexico, South Africa, Spain and the United States
The announcement said the transaction is expected to significantly accelerate the start and generator group’s growth in North America and China, as well as maintain its position in Europe.
“ZMJ and CRCI are ideal partners for our SG business. 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,” said Dr. Rolf Bulander, chairman of the Mobility Solutions business sector and member of the management board of Robert Bosch GmbH.
Chengyao Jiao, chairman of ZMJ, said, “This acquisition is a significant step towards realizing our goal of becoming a global leader in the auto components sector. It also marks the beginning of an exciting new partnership with SG and all of its stakeholders.”
Established in 1958, Zhengzhou Coal Mining Machinery (Group) Co., Ltd. (ZMJ) is a manufacturer of coal mining machinery and auto components. ZMJ acquired ASIMCO Group in 2016 from Bain Capital. ASIMCO Group focuses on starters and generators, NVH parts and powertrain products.
CRCI (China Renaissance Capital Investment), founded in 2005, is a private equity firm in Greater China with over US $2 billion of total assets under management. The partners of CRCI said they are committed to identifying global and local M&A opportunities to bring capital and quality assets together for Chinese companies.