Houlihan Lokey is pleased to
announce that GS Yuasa International Ltd. (GS Yuasa) has entered into a
definitive agreement with Leoch Battery Company Ltd. to transfer majority shares
of its consolidated subsidiaries Tianjin GS Battery Co., Ltd. (TJGS), and Yuasa
Battery (Shunde) Co., Ltd. (YBSD), of China. This deal is expected to close within
the year.
Established in 2004 and headquartered in Kyoto, Japan, GS Yuasa International Ltd. (parent company: GS Yuasa Corp. (TYO:6674)) is a major global manufacturer and distributor of automotive and industrial batteries, power supply systems, and other electrical equipment.
With revenues of approximately US$3,820 million in FYE March 2023 and market capitalization of US$1,561 million (as of July 26, 2023), GS Yuasa is recognized as one of the top-ranking global suppliers of automotive and industrial lead-acid storage batteries in the world.
In view of the fast-changing automotive industry, environmental regulations, zero-COVID-19 policy, and its own growth strategy in China, GS Yuasa made the decision to partner with the Leoch Group and consolidate its battery operations in China through this deal to create the third-largest supplier of automotive lead-acid storage batteries in China.
With Leoch International’s platform and manufacturing capabilities, further synergies are expected in terms of sales and logistics. The deal is valued at approximately US$30 million and is subject to closing adjustments.
Houlihan Lokey served as the sole financial advisor to GS Yuasa and led a series of complex negotiations and processes regarding transfer price and definitive agreement negotiations.
If you would like more information about Houlihan Lokey or if you have any questions regarding the firm's role in this transaction, please contact one of the deal team members listed below.
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