SHANGHAI May 28 China's Shanghai Prime Machinery Co Ltd (PMC) will buy Dutch toolmaker Koninklijke Nedschroef Holding B.V. in a 325 million euro ($442.47 million) deal, the two firms said on Wednesday as Chinese companies continue to expand their global footprints.
The Hong Kong-listed Chinese firm, which specialises in manufacturing industrial parts, will buy 100 percent of the Dutch company to make use of its technological know-how in toolmaking for the automotive and aerospace sectors.
Chinese firms in industries as widespread as property, food and healthcare have been flexing their financial muscle in overseas investment. The country's authorities also relaxed rules on overseas investments last month to help fast-track deals below $1 billion.
"We will leverage their cutting-edge expertise and Nedschroef will immediately benefit from our strong Asian footprint," Zhiyan Zhou, chief executive officer of PMC said in a joint statement.
Nedschroef, which will remain headquartered in the Netherlands and operate independently, has revenues of around 500 million euros. The deal will help it expand its operations, particularly in the Asian market, it said in the statement.
"With this important new step in Nedschroef's evolution we will be able to accelerate our global expansion program and take full advantage of the tremendous growth opportunities in Asia and elsewhere in the world," the company's chief executive officer, Mathias Hüttenrauch, said in the statement.
The current owners of Nedschroef are Gilde Buy Out Partners, Parcom Capital and company management. Completion of the transaction is subject to the required approvals and merger clearance, the statement said.
PMC's shares closed down 2.68 percent on Wednesday, lagging a 0.59 percent rise in the benchmark Hang Seng Index.
($1 = 0.7345 euros) (Reporting by Adam Jourdan; Editing by Matt Driskill)