Prima Power Suzhou Co. Ltd signed the agreement for the acquisition of a 19% stake in the Chinese company Lead Laser.
Prima Power Suzhou Co. Ltd signed on 15/06/2018 the agreement for the acquisition of a 19% stake in the Chinese company Cangzhou Lead Laser Technology Co. Ltd. (Lead Laser), as resolved by the previous Board of Directors of Prima Industrie.
The transaction, whose total counter value is approx. 50 million renminbi (approx. 6.7 million euro), will be carried out through the Chinese company of the Group, Prima Power Suzhou Co. Ltd, of which Prima Industrie S.p.A. holds 70%. The signing of the acquisition contract will take place mid-June and the closing of the transaction, with payment and transfer of shares, is expected during the month of July. The agreement provides the non-binding option for the Group to acquire, by 2020, an additional 41% of Laser Lead capital at predefined conditions. The transaction is aimed at increasing the Group’s market share in the Chinese market of 2D laser machines, the largest in the world in terms of size and growth rate. Lead Laser will continue to market its products under its brand, as will the division of the Prima Power Group. The respective commercial organizations will also remain separate for the time being. Prima Industrie, through Prima Power brand, already holds a significant share of the Chinese market of high-end machines (3D laser, systems, panel benders), while it still has a limited presence in the market of 2D laser machines, where the number of competitors, also local, is very high.
“The acquisition of the participation in Lead Laser – explains the Chairman of Prima Industrie Gianfranco Carbonato – is one of the priorities declared by the management of Prima Industrie and represents an important step forward to the strengthening of the Group in the Asian and Chinese market in particular, also through the control of the crucial segment of two-dimensional laser machines, as well as a potential market for Prima Electro laser sources and numerical controls “.
The signing of the agreement took place in Cangzhou, a city with over 7 million inhabitants located in Hebei province, 180 km from Beijing, where Lead Laser is located. The ceremony took place in the presence of the top management of the companies involved in the transaction (Prima Industrie SpA, Prima Power Suzhou Co. Ltd, Lead Laser Changzhou, as well as Leeport Machine Tool Co. Ltd which owns 30% of Prima Power Suzhou) as well as representatives of local authorities, tv and press journalists, as well as the first Counsellor of the Embassy of Italy in Beijing, Emanuele De Maigret, who intervened expressing satisfaction for the Italian investment in China.
Lead Laser, which in 2017 achieved a turnover of about 350 million renminbi (equal to about 46.7 million euro), is one of the main Chinese producers in the market of 2D laser machines for sheet metal cutting. Prima Industrie, in turn, had turnover in China in 2017 of about 480 million renminbi (equal to about 64 million euro) and aims to increase its market share in the sector of 2D laser machines, the largest in the world for dimensions and growth rate.