The main Chinese operator in the pipe sector has taken over the European brass business, which generates a turnover of 540 million euros plus 15 million EBIDTA. KME group, the transferring company led by Vincenzo Manes, has recently strengthened its presence in the copper business. The transaction is worth 119 million Euros – 7.5 times the EBITDA.
KME hands its brass over to China. Intek Group, led by CEO Vincenzo Manes, has reached an agreement with Zhejiang Hailiang through its 100% subsidiary KME for transferring over the brass bar business led in Germany and Italy (there is a plant in Serravalle Scrivia, in Piedmont). The pipes business run in Germany and Spain has been handed over as well.
They own a third plant for bar production in France, but it didn't make it to the deal. Hailiang has still made a binding offer regarding the French segment acquisition, guaranteeing KME the possibility to sell (put option) its direct shareholding; an option that KME will be considering after convening with the employee representatives.
KME sold assets concerning 1,100 employees from the German group, and worth a total turnover of 540 million euros plus 15 million in EBIDTA – around one third of the whole group's turnover, amounting to 1.6 billion euros plus 77 million in EBIDTA at the end of 2017.
They agreed on a price of 119 million euros, plus working capital and the repayment of intercompany debts still existing at the closing date. The closing is subject to conditions precedent, and is expected to be taking place within the first quarter of 2019.
Zhejiang Hailiang, a listed company in Shenzhen, is the leading Chinese operator in the copper and brass tube market, with a solid international presence in both US and Asia but no reach in Europe before now.
KME is a German company and the main European copper products manufacture. The hand-over to Hailiang should help simplifying the group's industrial chain by reducing the number of products and plants, and by focusing its production on copper laminates, alloys, and special goods.
(Source:Class Editori)
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