DGAP-News: Willkie Farr & Gallagher LLP / Key word(s): Disposal/Disposal

30.05.2014 / 12:20

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3i Group plc ("3i"), and funds managed by 3i, today announced the sale of Hilite International ("Hilite" or "Company"), a leading global supplier of highly engineered automotive engine and transmission components, to AVIC Electromechanical Systems Co., Ltd. ("AVICEM"), a subsidiary of Aviation Industry Corporation of China ("AVIC"), one of the largest industrial conglomerates in China. The enterprise value of the transaction is approximately EUR 473 million.

3i invested in Hilite in 2011 in an all-equity transaction to help the Company further exploit its prospects in the fast-growing powertrain segment of the automotive industry. The Company's products improve fuel consumption, reduce emissions and enhance performance, thereby directly capitalising on these automotive megatrends which are driven by stricter legislation being enacted by governments globally.
Hilite has transformed significantly during 3i's ownership. The Company refocused its strategy on its core business of highly-engineered products, invested over EUR 100 million in R&D and capital expenditure, and leveraged 3i's global network to accelerate its expansion into China, the fastest growing automotive market in the world. While Hilite had very limited exposure to the Chinese market in 2011, China is expected to contribute more than 15% to total sales in 2014.

Today, Hilite holds leading positions in its focus segments and is well positioned for continued above-industry growth and profitability driven by products with increasing vehicle penetration and content per vehicle, combined with strong design and engineering expertise and world-class manufacturing capabilities.

The transaction is subject to customary formal approval by the relevant competition authorities.

Willkie Farr & Gallagher LLP provided legal counsel to 3i.
The Willkie team was led by Mario Schmidt (Corporate/Private Equity, Frankfurt) and Dr. Octávio de Sousa (Corporate/Private Equity, Frankfurt, joint lead) and included the partners Dr. Christian Rolf (HR, Frankfurt), Dr. Bettina Bokeloh (Tax, Frankfurt), Rolf Hünermann (Compliance/Corporate Commercial, Frankfurt), Russell Smith (Government Relations, Washington), Eugene Chang (IP, New York), Michael Johnson (Of Counsel IP, New York), Michael Katz (HR, New York), Jonathan Konoff (Special Counsel Corporate, New York) and the associates Daniel Zakrzewski (Corporate/Private Equity, Frankfurt), Mario Bammann (Finance, Frankfurt), Johannes Eckhardt (Corporate, Frankfurt), Jochen Riechwald (HR, Frankfurt), Christina Mann (Corporate, Frankfurt), Enno Appel (Antitrust/Corporate Commercial), Martin Waskowski (Corporate, Frankfurt), Suobin Wang (Corporate, Frankfurt), Marco Müller (Corporate, Frankfurt), Dr. Jan Claudio Munoz (Corporate, Frankfurt), Isabel Araujo (HR, New York), Joseph Antignani (Corporate, New York) and Michael Gordon (Corporate, New York).

Chinese law aspects were advised by Zhong Lun Law Firm with Yun Zhou, Xuezhong Lu, Lu Wan, Dandan Chen (all Corporate).

Willkie Farr & Gallagher LLP is an international law firm, comprising more than 600 attorneys with offices in New York, Washington, Paris, London, Milan, Rome Frankfurt and Brussels. The headquarters are in New York, 787 Seventh Avenue, Tel.: 001 212 728 8000.

Frankfurt, May 30, 2014


End of financial news

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30.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG.
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