Rödl & Partner advises Chinese Lince Group on the acquisition of mdexx Group

Munich/Shanghai, 28 September 2017: Zhuzhou Lince Group Co. Limited (Lince) has acquired all the shares of mdexx GmbH, based in Weyhe (Germany). The seller is Quantum Capital Partners GmbH, an international investment company headquartered in Munich. The purchasing price was not disclosed. With the acquisition of the mdexx Group, Lince strengthens its position in the European market and drives its internationalization. The mdexx Group gains a stronger market presence in China and Asia-Pacific through its new strategic investor.

During the acquisition process, Lince was extensively advised on business, legal and tax matters by an international team of Rödl & Partner specialized in international transactions. In addition to the implementation of the financial, legal and tax due diligence, Rödl & Partner also accompanied the purchase price and contract negotiations in Germany and China. The financial due diligence was carried out under the direction of partner Klaus Martin Haussmann and associate partner Matthias Zahn. The legal support was provided by Thomas Fräbel, the tax structuring and tax due diligence by associate partner Dr. Achim Kestler. Furthermore, the China Desk of Rödl & Partner under the direction of associate partner Jiawei Wang advised the Chinese investor Lince throughout the project.

Yongmin Xiao, Chairman of the Lince Group, welcomes the acquisition: "The acquisition of mdexx GmbH is a win-win situation. It allows both parties to work more closely together in Eastern Europe, promotes the Lince Group's further internationalization and the mdexx Group’s further expansion of its market presence in China and Asia-Pacific."

The mdexx Group develops and manufactures choke coils, filters, regulating transformers as well as axial and radial fans, in particular for the rail sector, but also for other industrial drives and renewable energies. There are approx. 500 employees working at the sites in Weyhe (Germany), Trutnov (Czech Republic) and Tianjin (China).

Lince was founded in 1979 and is headquartered in Zhuzhou, Hunan Province, China. The company is a major supplier to the railway sector and a leading manufacturer of structural components and ventilation and cooling systems for use in the railway sector. With more than 3,000 employees, Lince generated annual revenues of approx. EUR 450 million in 2016.

Quantum Capital Partners focuses on companies with significant development potential to enable them to achieve a profitable future and sustainable growth. The mdexx Group was part of the portfolio since 2016. “Following the successful reorientation and sustainable return of mdexx to profitability, Lince became the ideal strategic partner for the future development of mdexx. For Quantum, the sale of mdexx marks a successful exit from the first fund launched in 2014, “ says Tilman Richter, Director of Quantum Capital Partners GmbH.

Consultants for Zhuzhou Lince Group Co Ltd.

Rödl & Partner Munich – Financial

Klaus Martin Haussmann, Auditor, Tax Consultant, CPA (New York), Partner (Transaction Lead, Financial Due Diligence)

Matthias Zahn, Associate Partner (Financial Due Diligence)

Kai Schmidt, Senior Associate (Financial Due Diligence)

Rödl & Partner Munich – Legal

Thomas Fräbel, Lawyer, Partner (M&A Lead, Corporate Law)

Michael Beder, Lawyer, Associate Partner (M&A, Corporate Law, Antitrust Law) Mario Schulz, MA (Dunelm), Lawyer, Associate Partner (M&A, Corporate Law) Elisabeth Schmidt, Lawyer, Diploma in Business Administration, Associate (M&A, Legal Due Diligence)

Sarah Vanessa Schneider, Lawyer, Associate (M&A, Legal Due Diligence)

Rödl & Partner Munich – Tax

Dr. Achim Kestler, Diploma in Business Law (Univ.), Tax Consultant, Associate Partner (M&A, Tax Law)

Lisa Schröcker, B.Sc., Associate (M&A, Tax Law)

Rödl & Partner Stuttgart – Legal / China Desk

Jiawei Wang, LL.M., Registered Foreign Lawyer (China), Associate Partner (Project Lead China, M&A, Contract Negotiations China)

Dr. Yanlin Xiang, Lawyer, Senior Associate (M&A, Legal Due Diligence China)

Yijue Kuang, Registered Foreign Lawyer (China), Associate, (M&A, Legal Due Diligence China)

Rödl & Partner - Shanghai

Xiaomei Fu, Legal Counsel, Partner (M&A, Contract Negotiations China)

Kelly You, CPA, CTA, Associate Partner (M&A, Tax Law)

Rödl & Partner - Hong Kong (Tax)

Mathias Müller, Tax Consultant, CPA (USA), Partner (Tax Structuring China, Hong Kong)

Rödl & Partner – Prague

Hans-Ulrich Theobald, Lawyer, Partner (M&A, Legal Due Diligence Czech Republic) Miroslav Kocman, Tax Consultant (CZ) (M&A, Tax Law)

Consultants for Quantum Capital Partners

TRACC LEGAL (Munich)

Dr. Thomas Lotz, Lawyer, Partner (M&A Lead)

Dr. Thorsten Steinhaus, Lawyer, Partner (M&A)