The following content is partially compiled from the "Truking People" WeChat official account and articles published by the Shanghai Securities News:
On the afternoon of April 28, 2017, at 5 PM local time in Frankfurt, Germany (11 PM Beijing time), the official signing ceremony for the joint acquisition of German Romaco Group by Truking Science and Technology Co., Ltd. (Truking Technology) and its controlling shareholder Changsha Truking Investment Co., Ltd. (Truking Investment), as well as Hunan Pengpai Equity Investment Management Service Co., Ltd. (Pengpai Investment), was held. As the exclusive M&A advisor and co-investor for Truking in this transaction, Huanping Zhang (upper right in the photo), General Manager of Eurasian Consulting GmbH, along with other Chinese and German guests and media, witnessed the signing of the agreement by Tang Yue, Chairman of Truking Investment and President of Truking Technology, and Rolf Scheffels, Director of DBAG.
According to the merger agreement and related transaction documents, this merger will be completed in two steps: initially, Truking Technology, in conjunction with the controlling shareholder Truking Investment and Pengpai Investment, will acquire 75.1% of Romaco's equity. The parties have also agreed that within 30 months after the completion of the first transaction, and following a smooth transition in management and culture as well as improved operations, Truking Technology plans to acquire the remaining 24.9% of Romaco's equity held by DBAG. The joint acquirers, Truking Technology, Truking Investment, and Pengpai Investment, will hold 11%, 76%, and 13% of the shares, respectively. The total funds involved in this merger are approximately 150 million euros.
Romaco's headquarters are located in Karlsruhe, Baden-Württemberg, Germany, and it oversees multiple wholly-owned subsidiaries and production facilities. Additionally, it owns and operates several brands, with a total of approximately 550 employees. It is a world-class company in the pharmaceutical equipment industry, particularly renowned for its powder granulation technology, pneumatic powder filling technology, and tabletting technology, all of which are at the world's leading level. As a top-tier provider of pharmaceutical packaging machinery and automation solutions (especially in the field of solid dosage forms), Romaco can offer liquid/powder/capsule filling solutions, tablet and capsule counting solutions, blister packaging solutions, strip packaging solutions, tablet compression solutions, secondary/final packaging solutions, drug and cosmetic filling solutions, granulation and coating systems, and various other products and solutions.
Since its establishment, Truking has focused its resources on the continuous research and development and production of pharmaceutical equipment-related products and technologies, continuously enhancing the automation, informatization, and intelligence of its products. It is dedicated to providing specialized and personalized pharmaceutical equipment solutions to pharmaceutical companies and building smart factories for the pharmaceutical industry 4.0. After 17 years of development, Truking has become the largest supplier of pharmaceutical equipment in China, particularly strong in the field of liquid pharmaceutical equipment.
Romaco has an unparalleled advantage in the solid dosage form field. Through this merger and cooperation, it will significantly advance the vertical, horizontal, and platform development strategy of Truking and improve the industrial chain, enhancing the company's comprehensive service capabilities. Truking Investment Chairman, Truking Technology Chairman and President Tang Yue stated: "This cooperation with Romaco is also of great value for advancing Truking's 2025 strategy, making us a leading enterprise in the global pharmaceutical equipment industry. We are committed to contributing greater strength to the global health cause for all humanity."
Romaco's products have been sold to 180 countries, with China, as the world's largest developing country and the most populous nation, always being a market of great importance to Romaco. Romaco General Manager Paulo Alexandre stated: "Collaborating with China's most powerful pharmaceutical equipment company is a very wise decision for both Romaco and Truking. This will help Romaco achieve better development in this market with immense potential."
Meanwhile, Romaco's customers were primarily European, including world-renowned pharmaceutical companies such as GlaxoSmithKline and Bayer, with customers also spanning Asia-Pacific, the Americas, and Africa. Through this acquisition, it will help enhance Truking's international brand influence, increase business opportunities in Europe and North America, aid in the expansion of Truking's international business, and boost Truking's profitability.
Through this acquisition, Truking and Romaco will complement each other in terms of products, markets, and technology, with both parties enjoying significant synergies.
Eurasian Consulting GmbH served as the exclusive financial advisor to the buyer in this transaction, providing services that included establishing initial contact and mutual trust between the buyer and seller, assisting investors in valuing the target and making offers, helping the joint acquirers design the transaction structure and set it up, and actively participating in the final legal and business negotiations between both parties. Additionally, the merger and acquisition fund managed by Eurasian Consulting GmbH successfully participated in the project as a co-investor, supporting Truking and other co-investors in completing the transaction.
Truking Tang Yue, Chairman (fifth from the left), Zhou Feiyue, Vice President (fifth from the right), and Zeng Linbin, Investment Director (first from the left), raised glasses with the Eurasian Consulting GmbH team to celebrate.
