Dongshan Precision plans to acquire GMD Group to establish European industrial layout

On the evening of May 13, Dongshan Precision announced that in order to actively promote its globalization strategy, expand the company's industrial layout in Europe, and enhance the market scale in the field of auto parts, the company's subsidiary DSBJ PTE. The total transaction amount is approximately 100 million euros (equivalent to approximately 814 million yuan).

This transaction will be completed through a diversified debt restructuring plan. DSG will acquire part of GMD Group's claims at a cash discount and optimize GMD Group's debt structure through debt-for-equity swaps, shareholder borrowings to repay debts, and obtain debt exemptions. After the transaction is completed, DSG will hold 100% of the equity of GMD Group.

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Founded in 1986, GMD Group is a French auto parts contractor with business covering French domestic and overseas markets, focusing on the manufacturing of passenger car and commercial vehicle parts. The group has annual operating revenue of 1 billion euros, more than 6,600 employees, and 46 factories in 12 countries around the world, mainly in Europe, Asia and Africa. GMD Group currently has three major business segments: Plastics and Leather Division, Casting Division and Stamping Division, all of which are independently operated.

In terms of finance, GMD Group's audited operating income in 2023 was 983 million euros, and its net profit was -6 million euros; its unaudited operating income in 2024 was 1.012 billion euros, and its net profit was 3 million euros.

Dongshan Precision’s business covers four major sectors: electronic circuit products, LED display devices, touch panels and liquid crystal display modules, and precision components, of which LED display device business accounts for the smallest proportion. In 2024, the LED display device business will achieve revenue of 768 million yuan, accounting for 2.09% of total revenue.

Dongshan Precision stated that this transaction is to fully implement the company's two-wheel drive strategy, actively increase the company's market share in the field of auto parts, establish the company's industrial layout in Europe, and accelerate the globalization process. After the completion of this transaction, the company will leverage the business and influence of GMD Group to further expand well-known customers in the global automotive industry, which will have a positive impact on the continuous improvement of the company's financial situation and the steady improvement of its operating quality. (Compiled by LEDinside)

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