Transworld Capital Group Advises Pacific Century Motors on Acquisition of Nexteer Automotive from General Motors
TCG Press Release
July 8, 2010
DETROIT – Transworld Capital Group("TCG")(www.transworldgroups.com) is proud to announce its role as special advisor on what is being hailed as the largest move by a Chinese company into the U.S. auto-parts industry – the sale of Nexteer Automotive, the steering and driveline business of General Motors, to Pacific Century Motors.
Established in 1906, Nexteer Automotive (“Nexteer”) is a global provider of advanced steering and related technology. The company designs, engineers, manufactures and sells electric power steering, hydraulic power steering, steering columns and driveline halfshafts for over 60 automobile manufacturers and tier one suppliers worldwide. Headquartered in Saginaw, Michigan, Nexteer employs over 6,000 people in 42 facilities throughout North and South America, Europe and Asia.
Pacific Century Motors is a buyers' consortium led by Beijing E-Town International Investment & Development Co., Ltd. (“E-Town”). E-Town is a state-owned enterprise serving as the financing and investing arm of the Beijing Municipal Government. PCM entered into a definitive agreement to acquire Nexteer from General Motors on July 7, 2010. The acquisition is expected to close during the fourth quarter of this year and is subject to customary closing conditions, including applicable regulatory approvals.
This transaction is the result of General Motors' decision in January 2010 to explore strategic options for Nexteer. With the assistance of Transworld Capital Group, PCM worked diligently over the past six months with General Motors, the UAW, global customers, critical suppliers, and Nexteer management, to ensure a successful transaction and seamless transition of Nexteer to an independent automotive supplier with a market-leading position and unrivaled steering technologies.
Transworld Capital Group was appointed special advisor to PCM due to extensive experience in cross-border transactions, including its role as advisor on the prominent acquisition of Delphi’s brake and suspension businesses in November 2009. TCG worked with PCM to develop and oversee the acquisition strategy, prepare compelling bid documents, and assemble a transaction team in order to secure the deal after several rounds of bidding. In addition, TCG played an integral role in negotiations with GM, which lead to the signing of the purchase agreement on July 7, 2010.
"Our special advisors TCG have played a critical role in organizing the transaction team that lead to the successful signing of the definitive agreement," said a senior official with Beijing E-Town.
"It would have been very challenging to be successful without the support of E-Town's knowledge, operating expertise and experience in the North American automotive market," said Jack Z. Chen, founder and CEO of TCG. "The professionalism, dedication and perseverance demonstrated by the deal team were critical in negotiating this transaction."
About Transworld Capital Group
Transworld Capital Group is a financial advisory and consulting firm specializing in cross border transactions between the Western World and Greater China. The company advises both on M&A and capital-raising transactions as well as partnerships to help businesses access the China market. TRANSWORLD was appointed International Investment Advisor by Beijing Municipal Government in May 2009. More information can be found at www.transworldgroups.com.
About Nexteer Automotive
Established in 1906, Nexteer is a global provider of advanced steering and related technology. The company designs, engineers, manufactures and sells electric power steering, hydraulic power steering, steering columns and driveline halfshafts for over 60 automobile manufacturers and tier one suppliers worldwide. Headquartered in Saginaw, Michigan, Nexteer employs over 6,000 people in 42 facilities throughout North and South America, Europe and Asia. More information can be found at www.nexteer.com.
About E-Town International
E-Town is a state-owned enterprise under Beijing Economic-Technological Development Area (BDA). Serving as the financing and investing arm of the Beijing Municipal Government, E-Town plays an active role in funding investments of strategic importance with high levels of technology. Currently, there are over 3,000 companies from more than 30 countries that have established a presence in BDA with a total investment of over RMB yuan 100 billion (approximately US$15 billion). Notably, E-Town has been granted over US$15 billion in the form of credit facilities provided by various banks and financial institutions in China for the purpose of financing acquisitions. More information can be found at www.bda.gov.cn.