The Bosch Group and Mahle Group have announced their intention to sell the joint venture Bosch Mahle Turbo Systems (BMTS) to FountainVest Partners, a Chinese private equity investor backed by global institutional investors.
A contract was signed in by the parties involved, who have agreed not to disclose the purchase price or any other details of the sales contract. Completion of the sale is subject to approval by the responsible antitrust authorities.
The buyer intends to take over the entire business including its approximately 1300 employees across all the locations. FountainVest said it plans to further expand the turbocharger business.
“We are convinced that the market for turbochargers will continue to grow in the years ahead given this product will play a key role in emission reduction solutions,” said Frank Tang, co-founder and CEO of Fountainvest. “With its solid R&D foundation and advanced manufacturing technology, BMTS is well positioned to capitalize on this favorable industry trend.”
While the international market for turbochargers is expected to continue to grow in the years ahead as the trend toward smaller engines fitted with turbochargers, especially for hybrid drives, remains strong, BMTS has not yet reached the scale needed to achieve sustainable success in this market environment. Bosch and Mahle did not intend to drive forward the further expansion of BMTS themselves, and announced their plans for the sale of the joint venture at the beginning of 2017.
BMTS was founded in 2008 and develops and manufactures turbochagers for passenger cars and commercial vehicles from its locations in Stuttgart and Blaichach, Germany; St. Michael, Austria; and Shanghai, China.