(Yicai Global) May 24 -- Chinese transmission maker Tieliu Clutch Co. plans to acquire German metal-working firm Geiger Fertigungstechnologie GmbH to expand production with a view to eventually entering the new energy vehicle market.
Tieliu Clutch will pay the Pretzfeld company's three shareholders a total of EUR28 million (USD32.8 million) to gain full control of the high-precision metal parts maker, the Zhejiang-based firm said in a statement. The acquisition will enable Tieliu to enhance its technical expertise in the area of all-electric vehicle components.
The deal is subject to approval by the Chinese and German governments, which may involve a certain degree of uncertainty, the statement added.
Geiger has had solid earnings boosted by an increasing volume of orders from core clients, the statement said. Operating income grew to EUR52 million last year, while net profit was EUR3 million. Sales gained 19 percent in the first quarter of this year.
The firm is Robert Bosch GmbH's sole supplier of fuel injectors for the European market, while other clients include the Cummins Auto Group, Continental AG, Brose Fahrzeugteile GmbH & Co. KG, and Hitachi Ltd.
Editors: Emmi Laine, William Clegg