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Carlsquare advised automotive supplier PMG Holding on its acquisition of Chinese powder metal specialist Yangzhou Leader Powder Metallurgy

The international automotive supplier Powder Metal Goldschmidt (PMG), headquartered in Füssen, Germany, acquired the Chinese powder metal specialist Yangzhou Leader Powder Metallurgy Co., Ltd. (LEADER), headquartered in Jiangsu, China. The Chinese automotive supplier LEADER was founded in 1997, has around 250 employees today and specialises in the production of shock absorber components made of powder metal.

“With the acquisition of LEADER, we are systematically continuing our strategic realignment”, Dr. Marius Gutes, CEO of PMG, explains the acquisition of the former Chinese competitor. Until now, PMG has had eight production sites in Europe (5), USA (2) and China (1) and is a leader in the powder metal segments powertrain and shock absorbers in particular. For PMG, the strategic focus for further growth lies both in powder metallurgy as well as in additional segments within and outside of the automotive industry. In this, the growth drivers are both the existing business areas as well as product innovations. For example, PMG also produces innovative powder metal components for electric motors, electrically powered axles and alternative drive systems. “LEADER is an effective addition to our production portfolio in the dynamic Chinese market. Our joint customers in China in particular will benefit from this acquisition,” said Dr. Gutes.

PMG is already established in China with its production site in Shanghai. Through the acquisition of LEADER, PMG is expanding its local presence in China. The company is strengthening its market position as a leading supplier of powder metal components and system solutions in the automotive industry. Through synergies at the customer, component and production strategy level, PMG is increasing their value creation for its customers through increase in competitiveness as well as being able to offer a larger global product portfolio with local tailor-made solutions around the world – in this case in China.

“We are looking forward to advancing the development and production of powder metal components under the PMG umbrella even more successfully than before,” said Ms. Ge, CEO at LEADER. “PMG is going to make LEADER’s dream of becoming the best and biggest shock absorber supplier in China possible” Ms. Ge continued.

Marius Gutes, CEO of PMG Holding commented: “This deal would not have been possible without Carlsquare’s patience and expert experience in cross border transactions. With a greater foothold in China, we are eager to see what the future holds and continue to work towards becoming the global partner of choice for automotive solutions.”

Carlsquare acted as the exclusive financial advisor to PMG.

PMG Holding
Yangzhou Leader Powder Metallurgy