Shanghai Electric 1.5 billion US dollar takeover of US Gauss

Our correspondent was informed that June 15, China's large state-owned enterprises Shanghai Electric Group will 100% holding the United States Gauss International Group.　　The acquisition, which involves a whopping $1.5 billion trillion, is another successful takeover by Chinese companies overseas. American Gauss International (Goss International) is a supplier of precision printing machinery and equipment, with a history of 170 years, headquartered in New Hampshire, the United States currently operates in 9 countries, with 4,000 employees worldwide.　　At present, Shanghai Electric Group (SEC) is the second largest shareholder of Gauss International. "The two sides will complete the second delivery in early June to achieve 100% Holdings," one Shanghai Electric Insider told the newspaper, "The current integration of the work is progressing smoothly."　　"The 1.5 billion-dollar overseas acquisition is aimed at" soft assets "such as technology, markets and talent, unlike the current Chinese companies ' huge acquisitions of assets overseas.　　It can be said that Shanghai Electric is doing is the Chinese state-owned enterprises go abroad, really began to hegemony the global technical industry an attempt. Such facts suggest that a new phase of Chinese companies ' overseas investment is beginning to start.　　May 28, Wang, Assistant Minister of Commerce of China, more than 100 Chinese auto industry entrepreneurs went to Detroit to study investment opportunities.　　The dilemma of Gauss International Shanghai Electric and Gauss International "marriage", in fact, quite a bit "naturally" means.　　With nearly 170 years of history, Gauss International was merged with three companies, including Gauss Printing, Harris images and the screen printing department in Heidelberg, Germany. Gauss international production of the most cutting-edge high-speed automatic drum offset printing equipment, the equipment can be printed within 1 hours of bookbinding 90,000 of the magazine. At present, Gauss's printing machinery has been able to achieve the industry's most advanced application of "lights Out Operation" and "Personalized order system." In other words, a large barrel of coated paper, no manual operation, out of the tens of thousands of bookbinding of the "Times" magazine.　　Moreover, the "Times" received by different subscribers, the internal pages of advertising and content can be completely different. However, due to the rise of the Internet, Gauss International printing machinery, the end users: traditional media (such as newspapers and magazines), commercial advertising printing still to books, have been seriously affected, the "internet age" demand for printing products has fallen sharply.　　The printing plant's business has plummeted, the demand for printing machinery and equipment has declined, and Gauss International is in trouble. Since it is a private enterprise, it is not possible to obtain operational data from the public data of Gauss International. But according to the data provided by Shanghai Electric, Gauss International 2007 global turnover of 1.1 billion U.S. dollars, 2008 to 1 billion U.S. dollars. In the year 2007-2008, Gauss International was in a profitable state.　　But 2009 suffered from the external shocks of the global economic crisis, the performance has a big decline. 2007, Gauss International sought to sell.　　That year, a private equity (PE) fund bought Gauss International. But the PE game rule is that it will not hold and tube for longAn industrial enterprise.　　And this is very dangerous for a device supplier--because mechanical equipment orders are millions of to tens of millions of dollars, and precision machinery, high technical content, for the "uncertain future" suppliers, the global printing factory customers can not help but weigh the stability of their enterprises and the continuity of after-sales service.　　Therefore, Gauss International initiative to find the Shanghai Electric Group. "The first is Gauss International initiative to communicate with us." Yang Guoxing, vice president of Shanghai Electric Printing package group, said, "In 2007, Gauss International found us."　　"At present, Yang and another Chinese senior executive Qin Yu, has been working at Gauss International headquarters for more than half a year." Gauss International found Shanghai Electric Group for a reason, because both sides have already known each other. 1993, Gauss International entered the Chinese market to set up a joint venture Shanghai Gauss, then the partner is Shanghai Electric.　　Joint venture Shanghai Gauss laid the groundwork for further cooperation between the two sides. To attract Shanghai electric "soft assets" compared to Gauss International, Shanghai Electric is undoubtedly more powerful: 2008 sales reached 8.6 billion U.S. dollars, there are 600 factories.　　More importantly, Shanghai Electric has the most important resource-a huge market that is still growing rapidly. "The total volume of Western market operations is declining. Only the Eastern market-China and other Asian countries-is still growing.　　"Gauss International CEO Max can say at a research conference. More than 10 years into the Chinese market, Gauss International has a strong customer base in China.　　Almost all large media groups, such as the Southern Press group, have procured Gauss's equipment. "Within the next two or three years, China's printing plant will enter the stage of large-scale upgrading." "Max can say.　　This undoubtedly means that China and Asia will be a "major battleground" of Gauss's future. Xiaoguiu, Deputy secretary of the Shanghai Municipal party committee, who visited Gauss International headquarters, said to our correspondent, "The decision of Gauss International is right because it can get the Chinese market and the full support of the Shanghai municipal government."　　"Shanghai Electric is a" soft asset "owned by Gauss: Global sales market, technology, and strong engineering research and development management experience. "These are the things we don't have at the moment.　　"said Yang Guoxing of Shanghai Electric Group. Besides being a bit of a "gray-headed brain" because of the shrinking market, the intrinsic value of Gauss International has a strong attraction to Chinese enterprises: according to the information provided by Gauss International, Gauss currently has 739 effective patented technologies, 226 patents have been patented; in 8 factories around the world, Gauss International has nearly 600 engineers,　　Last year's total investment in research and development remained at $280 million trillion, and in response to the printing market's slide, Gauss is looking into a bigger market-the packaging machinery market.　　In the face of the strategic interests of mutual agreement, the two sides are almost clicked.　　According to Shanghai Electric, in mergers and acquisitions, the two sides can form a "resultant force" is considerable. "For example, we are looking at whether we can buy more spare parts from China to reduce costs," he said. Or，To relocate most of the low-end metal processing to China. "Yang Guoxing said.　　and Gauss International will be fully focused on high-end design and development and technical content of high equipment assembly.　　An insider who took part in the takeover told reporters that because the U.S. economic recovery is good, the current Gauss international has emerged from the plight of losses, began to profit.　　It is reported that the acquisition plan has been the national Development and Reform Commission, the Ministry of Commerce, Sasac's support. "Printing machinery is one of the key industries of equipment industry, we will fully support the acquisition of Shanghai Electric." Shanghai Municipal Party Committee deputy secretary of the Xiaoguiu to the reporter said.