One, the same industry mergers and acquisitions, enhance the core competitiveness of enterprises
In the past two years, Chinese enterprises in the United States in the Midwest region mergers and acquisitions of four U.S. manufacturing enterprises, basically belongs to the same industry mergers and acquisitions, such as Dalian Machine Tool Group mergers and acquisitions of Ingersoll's subordinate enterprises, Qinchuan Machine Tool Company mergers and acquisitions of U.S. machine tool company, Shenzhen Container Company mergers and acquisitions and the establishment of the U.S. VANGUARD container trailer manufacturing company. Through mergers and acquisitions, not only to expand the export of domestic components, and access to the production technology of the acquired enterprises, human resources and brands, etc., through the complementary advantages, improve the product grade and enhance the strength of the enterprise itself.
For example, the Dalian Machine Tool Group invested tens of millions of dollars, wholly-owned acquisition of the U.S. machine tool manufacturing industry, a well-known company Ingersoll Production Systems, Inc. was established in Dalian Machine Tool Group Ingersoll Production Systems (DMTIngersollProductionSystems), mainly engaged in the combination of machine tools (production line equipment), the production and sales.
This U.S. company with a Chinese pedigree has the world's best-known brands and sales channels in the machine tool industry, as well as low-cost back-up in China and the Dalian plant's 25 sales outlets in China. Products are sold in the U.S. market, but also to meet the needs of the Chinese market. After normal operation, the company undertakes orders from GM, Ford and other countries in the U.S., with each machine tool selling for up to a million dollars or more.
China's Shenzhen Container North America invested in the acquisition of a U.S. container trailer manufacturer. After the acquisition was completed, CIMC North America invested part of the equipment and capital in time, completed the transformation of the original company's technology and production line, and hired senior professionals to be responsible for the management, sales and finance of the new company. Meanwhile, CIMC North America focuses on utilizing the management and technical advantages of its domestic parent company and purchasing part of the raw materials from China to reduce the production cost. At present, the company has reached the design and production requirement of 8,000 units per year, and the annual sales can reach more than 100 million dollars.
Shanxi Qinchuan Group Co., Ltd. invested in Michigan to acquire a U.S. broaching machine (broach&machine) manufacturers and their subsidiaries. By combining Qinchuan Group's technological advantages in cutting, the enterprise is now operating normally, in addition to continuing to produce machine tool products, but also will sell Qinchuan company products.
Second, access to sales networks, logistics systems and brands, extending the value chain
In the United States, Chinese-funded enterprises produce products mainly for the local market. By virtue of investment and M&A, they can make full use of all kinds of resources of the original enterprise, including sales network, logistics system, brand, etc., so that Chinese enterprises can obtain more intangible assets.
For example, Dalian Machine Tool Group acquired the near-bankrupt Ingersoll Production Systems, Inc. to solve its cash flow problems, the company out of the doldrums, reorganization into normal operations. The company's good reputation in the U.S. machine tool industry, making the old customers come one after another. Orders from General Motors (GM), Ford (Ford), John Deere Tractor Company (JohnDeere), Delphi (Delphi), Caterpillar (Caterpillar), and Cummins Diesel (Cummins) have kept Ingersoll Manufacturing Systems' order books full for nearly two years.
Three, clear M&A goals, choose the right way and time
Stick to the company's main business, set up a clear development goals and direction, do not blindly pursue the big and ignore the strong, in the acquisition or investment in the repeated demonstration before choosing the best time in a timely manner.
Dalian Machine Tool Group and Ingersoll Production Systems have been doing business with each other for more than 20 years. The Dalian factory has long admired Ingersoll's reputation in the machine tool industry, and is very familiar with its product technology, quality, market and even leadership character traits. When it learned through informed sources that the enterprise was not doing well, Dalian Machine Tool Company seized the opportunity to acquire it decisively.
Shenzhen Container Company in the acquisition, the U.S. market and container trailer industry for nearly two years of research, in Indiana selected a few acquisition targets and through the bankruptcy auction form of mergers and acquisitions of U.S. companies. In this type of merger and acquisition, the financial situation of the auctioned company is completely open to the public, and the buyer has a clear picture of its debt situation.
Four, the hiring of foreign managers for the completion of the acquisition of enterprise management, the above Chinese companies without exception chose to be responsible for the foreign side and hire local workers. Dalian Machine Tool Group retained all of the original management personnel, the Chinese side only sent a shareholder representative resident in the United States. The Shenzhen Container Company also hired experienced industry professionals to run and manage the company, and the Chinese side dispatched technical staff. In the day-to-day operation of the enterprise, production, finance, sales are responsible for local employees, the Chinese side as shareholders focus on grasping the enterprise's profitability, technical exchanges, and some of the products of the domestic supporting and other issues.
Fifth, the benefits of the enterprise and its local social benefits complement each other
Chinese companies merged with the U.S. companies, orders continue to flow, sales prospects are optimistic. Shenzhen Container U.S. company mergers and acquisitions in just one year, its trailer sales of more than 100 million U.S. dollars, Dalian Machine Tool U.S. company in addition to the U.S. market based on the Shanghai General Motors, Hainan Mazda company is seeking to export to China. They also energize the local economy and create jobs. Dalian machine tool American company for the Illinois city of Rockford (Rockford) created 95 jobs, Shenzhen container American company to the northwestern Indiana brought more than 300 jobs, and become its town of Mona (Monon) employing the largest number of enterprises, it also brought to life the town's catering industry. Chinese companies in the U.S. Midwest investment dynamics, recently attracted the attention of the media, the Chicago business magazine "Crain's", "Financial Times" on the investment of Chinese companies into an objective report.