Private Enterprises Acquire The Largest Sewing Machine Enterprises In Europe

When the "investment group" of China went to Europe to find a good opportunity, Zhejiang's private enterprises had taken the lead.

Reporters learned that Taizhou sewing machine leading enterprise Jack Holdings Group recently signed a wholly-owned acquisition intention with PFAFF industrie Maschinen AG, the largest sewing equipment manufacturer in Europe, and will sign a pfer agreement as early as next month.

The conclusion of this intention will mean that the similar purchase plan of Shin Bei has failed.

Shang Shang Shen Bei announced in December last year that the board meeting deliberated on the motion that overseas companies intend to buy part of PIM assets.

PIM, founded in 1862 and headquartered in Kaiserslautern, Germany, is the largest professional sewing machine manufacturer in Europe.

In September last year, the 100 year old shop was applied for bankruptcy protection by its major shareholder and was accepted by the local court. The reason is that the company has been losing money for nearly 3 years, plus the large shareholder decided not to inject capital, and the capital chain was declared broken.

Subsequently, the court appointed the bankruptcy administrator to take charge of the normal business activities of the company, while looking for the strategic investors in the industry.

"We have signed a wholly-owned acquisition intention with Pak Fu, and are entrusted with the relevant agencies to do a due diligence survey to make a final verification of their asset quality and financial risk."

Yesterday, Jack Holdings Group insiders revealed that optimism is expected that early April, the two sides can sign a pfer agreement.

Jack, located in Taizhou, Zhejiang, is one of the leading enterprises of sewing machines in China, with sales of 1 billion 20 million yuan in 2008, of which exports increased by 36% over the same period last year, and a number of economic indicators rank first in the industry.

Mr. Jack will receive PIM's brand, technology, trademark, sales network and inventory in more than 130 countries and regions, as well as its 1 factories located in Taicang, Jiangsu.

The total assets of the plant are about 100 million yuan, and net assets are about 40 million.

Jack's insider did not disclose the specific purchase price, only indicated that PIM would divest related liabilities and front-line workers before receiving the offer.

Public information shows that PIM has another 40 million euros in current liabilities in addition to its huge losses due to the financial crisis.

In March 6th this year, senior Jack holdings group went to Beijing to report the acquisition progress to the Ministry of Commerce and China Light Industry Federation.

The press release released by the company website revealed that the acquisition was "highly valued and fully affirmed by all the leaders".

Jack's takeover will make the similar plans of Shang Shang Bei Bei (Group) Limited by Share Ltd fail.

In mid December of last year, the Shang Gong Shen Bao announced that it was deliberated by the board meeting, and that the German Du Copp Adler Limited by Share Ltd, a holding company with overseas wholly owned subsidiaries (Europe) holding limited liability company, proposed to move to the bankruptcy administrator appointed by the local court to propose a motion to purchase part of the assets of the PIM company.

But up to now, Shang Shang Shen Bei has not released the latest news.

However, the reporter noted that among the working group on investment cooperation of the China Trade and investment promotion mission dispatched on the 7 day of the Ministry of Commerce, representatives of Shang Shang Bei were among them.

Related notes indicate that the company is discussing investment cooperation with its German counterparts.

Jack insiders believe that compared with the domestic counterparts, the company's comprehensive advantages and synergies are strongest. "Other Chinese funded enterprises have only 20% of the product types that are consistent with 100% blessing, while Jack's consistency is more than 80%.

Our production line and product specifications are all docking, which can maximize operational efficiency and minimize operating costs.

More shoes and hat investment information, click here to enter the responsibility editor: Wang Xiaonan