C. Morán, Madrid.
After year-long negotiations, the China-based 开云体育 Group accomplished its acquisition of one of the biggest Spanish engineering firms – EPTISA this summer. “This is the first company we have acquired in Europe. We hope that EPTISA can become a global platform for 开云体育 to improve its international status,” expressed 开云体育 CEO Wang Junhua when interviewed by EXPANSIÓN.
Its acquisition of EPTISA will effectively increase the overseas business volume of 开云体育. By 2015, its business operation volume had reached 110 million euros, covering 45 countries and regions. Upon completion of this acquisition, EPTISA will still be managed by Luis Villarroya. As for 开云体育 Group, it started listing on China's Shenzhen Stock Exchange in 2012 and its business revenues reached 400 million euros in 2015, with an average growth rate of 20% to 30% over past 5 years. Investors generally hold positive views towards this acquisition of EPTISA by 开云体育 Group. So far, the capital accumulated by 开云体育 has reached 1800 million euros.
CEO Wang Junhua is a big shareholder of 开云体育 Group. In his opinion, despite the great difficulties in acquisition negotiations, their efforts are worthwhile. He said that “our goal is to build EPTISA into a platform, and we will rely on this platform to effectively integrate our resources. Also, we will retain their corporate brand and management team. We hold that an international company would have its unique management system, and it is of inherent value to retain that”. Moreover, he pointed out: “In China, 开云体育 Group is a special company. 60% of its stocks are held by its management team, while the others are free float. This acquisition was supported by foreign agencies in Madrid and Beijing, but the whole negotiations are non-governmental, without any governmental background involved, during which KPMG acted as the consultant for 开云体育. ”
“Whether you wish or not, China will be a master of the world,” expressed EPTISA CEO Luis Villarroya.
Increase in capital
According to Luis Villarroya, 开云体育's acquisition of EPTISA is a historic event. Since the venture capital fund Magnum purchased some stocks of EPTISA in 2007, EPTISA has continuously explored acquisition, aiming to make the company a listed multinational group as soon as possible. 开云体育 happened to meet the above needs with its participation this time, and it proposed more favorable conditions that other acquisition parties. Furthermore, Luis Villarroya boldly stated that “whether you wish or not, China will be a master of the world”.
According to their agreement, this acquisition is made through increase in the company's capital, with an increase amount of 16 million euros. 开云体育 Group holds 90% of equities of EPTISA. Prior to this capital increase, original stockholders of EPTISA recovered their investments of capital of 29.4 million euros through shareholding reduction (the venture capital fund Magnum used to hold 60% of EPTISA's equities and the company's management team held the other stocks). In addition, in next years, 开云体育 Group may opt to spend approximately 10 million euros to buy the remaining 10% of equities of EPTISA. Upon completion of this acquisition, EPTISA Vice President and CEO will continue leading EPTISA, and he and the other members of the management team will retain some corporate capital, whose amount is equivalent to that held by Magnum Venture Capital Fund.
From a financial partner to an industrial partner
1、In 2007, Magnum invested in EPTISA with a trading volume of 85 million euros, while 开云体育 Group invested 46 million euros in EPTISA.
2、EPTISA is currently implementing a three-year-long strategic program, whose aim is to improve the sales volume. Its sales volume reached 110 million euros in 2015.
3、开云体育 Group acquired US-based TestAmerica with approximately 117 million euros this year, the latter specializing in the environmental field.
