DETROIT Beijing E-Town International Investment & Development Co., Ltd. (E-Town) announced that it formed a joint entity with Tempo International Group Limited (Tempo) called Pacific Century Motors (PCM), which has entered into a definitive agreement to acquire Nexteer Automotive (Nexteer) from General Motors. 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, its steering and driveline business that was originally formed in 1906. E-Town and Tempo have followed the developments of Nexteer closely during the last two years and worked 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.
Zhang Boxu, director of E-Town Development Area, said, "This transaction is an example of the Beijing Municipal Government’s and E-Town Development Area’s support to joint overseas acquisitions in order to implement Beijing’s development strategy of building a high-end industrial cluster in the south part of Beijing, upgrading the city’s economic configuration and promoting development of the high tech sector, so as to turn Beijing into a modern city with advanced industry and a sustainable economy."
Zhao Guangyi, chairman of E-Town and PCM, added, "Today’s announcement reflects a win-win situation. From Nexteer’s perspective, this new ownership will provide access to not only continued capital investment but also new growth opportunities, which will allow Nexteer to continue its growth worldwide in technology and manufacturing, and particularly enable greater access to untapped business in the China market."
"Our special advisers Transworld Capital Group have played a critical role in organizing the transaction team that lead to the successful signing of the definitive agreement," said Mr. Zhou Tianbao, chairman of Tempo and president of PCM. "Nexteer will continue to be led by Bob Remenar and his team. The company’s current manufacturing, technical and customer support footprint will continue, and Nexteer’s technology center and headquarters will remain in Saginaw, Mich. PCM is also pleased to honor the recently approved five-year labor agreement with the UAW that includes adding new jobs in Saginaw."
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, Mich., 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.