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Bosch to sell starters, generators unit to China's ZMJ

Published 03 May 2017

Bosch is planning to divest its subsidiary Robert Bosch Starter Motors Generators, including all subsidiaries, to the purchaser consortium ZMJ (Zhengzhou Coal Mining Machinery Group Co., Ltd.), Zhengzhou, China, and CRCI (China Renaissance Capital Investment), Hong Kong, China.

ZMJ already operates in the automotive supply sector via various investment holdings. For starters and generators, as well as in its capacity as a manufacturer of engine components for commercial vehicles and passenger cars, ZMJ is a major Chinese automotive supplier.

The purchaser now wishes to complement the Bosch activities hitherto in the starters and generators segment with its portfolio, and to use this for further internationalization. As ZMJ’s long-standing business partner, the financial investor CRCI will support the company in this acquisition as well.

The purchase agreement was signed by Bosch, ZMJ, and CRCI on May 2, 2017. It has been agreed that the purchase price will not be disclosed. Consummation of the transaction is subject to approval by the antitrust and other official authorities, as well as to the associates at the German locations consenting to the transfer to a new company.

The purchaser intends to take on all the just under 7,000 SG associates, as well as all the SG locations.

Bosch and the German employee representatives’ negotiating team have now reached an agreement that supplements the original agreement with provisions relating to the purchaser.

Explaining his company’s decision, Chengyao Jiao, the CEO of ZMJ, says: “We are very pleased that we can now add to and successfully further extend our business with these new associates, their expertise, and the excellent products of the Starter Motors and Generators division. In the future, we want the Starter Motors and Generators division to play a central role in our company.” Jiao adds: “Above all, we look forward to working with the existing management team to build up a business in the rapidly growing emerging markets. In addition, we want to further strengthen our position in the markets in which SG is already a leader.” ZMJ will support SG in further expanding its competitive product portfolio. Improved regional presence, especially in Asia, will allow SG’s business to be expanded sustainably and profitably.

“We have achieved our goal and found a purchaser offering a viable industrial concept and a long-term perspective for successfully taking this business forward internationally, and thus for associates,” says Dr. Rolf Bulander, chairman of the Mobility Solutions business sector and member of the management board of Robert Bosch GmbH. Commenting on the sale, he says: “I am confident that, in this new constellation, the division can seize its opportunities for a positive future.”

In mid-2015, Bosch announced it was examining strategic options for realigning the division. These included the search for a partner or buyer. Bosch is convinced that, in this constellation, the division’s competitiveness can be increased and that further stimuli for growth can be created. Bosch has invested a lot in making this happen. The carve-out was the most complex one in the company’s history.

Source: Company Press Release