MP Corporate Finance acted as the exclusive M&A advisor to Fröhlich Group in the sale of their operations in China: Fröhlich Plastics Precision Production.
Fröhlich Plastics Group (FPG) is a Germany family-owned company specializing in the production of injection-molded components, mainly for the automotive industry.
In the mid 2000s, at the request of one of the company’s long-standing customers, FPG established manufacturing operations in China (FPPP) to serve their customer’s local need for high quality, safety-critical technical plastic parts.
Since then, FPPP has grown dynamically and developed into a trusted supplier within not only the major European, but also Chinese automotive clients. FPPP predominantly provides safety-critical parts such as brake fluid and gearbox oil reservoirs, as well as various other technical demanding parts.
The company is uniquely competitive, being located in in the European OEM cluster in China close to Shanghai, while also directly integrated into German production quality systems. This is demonstrated by its strong growth in previous years, and its ability to win more and more customers.
Through the acquisition TKW Molding (part of HENN Group) expands its activities and capabilities from Europe to China, forming a dynamic intercontinental group and tapping into the fast-growing Chinese automotive market.
MP Value Add
The dedicated Automotive sector team of MP Corporate Finance advised FPG throughout the whole transaction from preparation until closing. Through in-depth sector knowledge and together with management, MP prepared the process documentation emphasizing the strengths and growth drivers of the target company, identified and approached the most suitable buyers.
By creating a highly competitive global bidder environment and leading the commercial part of the SPA negotiations, MP furthermore optimized the deal value and enabled the owners to select the most suitable partner and package, ensuring a sustainable and successful future for FPPP.