Techcent-owning Deng Family Invests in ALBA Group
Baker & McKenzie advised ALBA Group, a leading recycling specialists and raw material supplier, on the entry of a Chinese investor in two segments of the ALBA Group. The ALBA Group and a fund under the leadership of the Deng family, also controlling shareholder of Techcent, signed purchase and participation agreements on 1st October in Frankfurt.
Subject of the participation are on the one hand, selected areas of the China-business in leading technology growth areas, such as the WEEE (Waste of Electrical and Electronic Equipment) scrap and ELV (End-of-Life-Vehicles) recycling, and on the other hand, the services segment, including inter alia the Dual System Interseroh, which plays an important role in the collection and recovery of lightweight packaging (LWP) from the yellow bin / yellow bag, and the world's leading sorting facilities machine for lightweight packaging.
Investor participation in both of these two fields of the Berlin based recycling company lies at 60 percent. The completion of the transaction is subject to antitrust approval.
Baker & McKenzie advised the ALBA Group on all legal aspects of the transaction structure, the acquisition of shareholdings and the finalization of the relevant shareholders' agreements.
"With our experienced international team we were in the position to advise our client on all relevant legal aspects. A special focus of our advice, in addition to the acquisition of the shares, was on the balanced design of the future corporate governance", comments Dr Thomas Dörmer, partner at Baker & McKenzie. Previously, a team led by Dr Dörmer and Dr Heitling already advised the ALBA Group successfully on establishing a joint venture with two other Chinese partners - the Guangdong Rising Assets Management Co. Ltd. and the Zhongde Metal Group Co. Ltd. - on the ecological waste treatment in high-efficiency household waste treatment plants.
With its two brands – ALBA and Interseroh – and a total of about 7,500 employees ALBA Group operates in Germany, Europe and Asia. With an annual turnover of approx. 2.2 billion Euros (2015) ALBA Group is one of the leading recycling and environmental services companies as well as raw material providers worldwide. In 2015 alone ALBA Group saved almost 5.9 million tonnes of greenhouse gases compared to primary production and at the same time about 51.8 million tonnes of primary raw materials through its recycling activities.
Chengdu Techcent Environment Co., Ltd („Techcent“) is a leading environmental company headquartered in Chengdu in Sichuan/China. Founded in 2001, the company focuses on research, development, services and engineering in the field of environmental technologies. In March 2016, Techcent acquired Bilfinger Water Technologies GmbH, one of the world leading providers of plants, components and services with respect to water treatment technologies, for approx. 200 million Euros. Listed at Shenzhen Stock Exchange, Techcent has a market capitalization of 1.2 billion Euros.
The team led by Dörmer / Heitling also advised i.a. Schuler AG, world market leader in metal forming, on the acquisition of the tool manufacturer AWEBA and a consortium of Enovos International and Swiss Life Asset Management in the bidding process regarding Thyssengas in the recent past.
The Corporate/M&A team of Baker & McKenzie regularly advises clients on cross-border transactions and reorganizations. Most recently Baker & McKenzie advised Deutsche Beteiligungs AG on the minority interest in the R&M International GmbH and previously in the participation of the Swiss mageba AG, GFKL Lowell Group on the acquisition of Tesch collection, Dassault Systèmes on the acquisition of the CST group, Sulzer on the takeover of the GEKA group of 3i, Allegion on the acquisition of Trelock, RWE and E.ON on the sale of their shares in the Luxembourg energy supplier Enovos, Deutsche Beteiligungs AG on a non-controlling interest in mageba AG, HITACHI Koki on the acquisition of Metabo AG, Barry-Wehmiller group on the acquisition of the operations of Winkler+Dünnebier GmbH, ZF Friedrichshafen AG on the acquisition of the industrial and wind turbine business of Bosch Rexroth AG, Group Le Duff on the acquisition of Kamps and Telefónica/E-Plus on the sale of yourfone to Drillisch.
Baker & McKenzie team advising ALBA Group:
Corporate / M&A / Energy & Infrastructure: Dr Thomas Dörmer (partner, Berlin), Dr Tim Heitling (partner, Berlin)
Corporate / M&A: Christian Atzler (partner, Frankfurt), Dr Holger Ellers (partner, Berlin), Dr Daniel Neudecker (associate, Berlin), Holger Engel Kamp (associate, Berlin), Dr Giannina Kreutz (associate , Berlin), Fabian Hertel (associate, Berlin), Lipei Shi (associate, Frankfurt)
IP: Dr Michael Fammler (partner, Frankfurt), Dr Benjamin Koch (partner, Munich), Dr Markus Hecht (associate, Frankfurt), Dr Martina Bannasch (associate, Munich)
Banking / Finance: Dr Oliver Socher (partner, Frankfurt)
Employment: Dr Steffen Scheuer (partner, Munich), Katja Haeferer (partner, Munich)
Other Baker & McKenzie offices: Brussels, Hong Kong, Rome, Warsaw, Barcelona, Beijing and Shanghai