FountainVest to buy German turbocharger business

Financial terms were not disclosed, and the transaction remains subject to approval by antitrust authorities. FountainVest will support expansion by the company.

“We are convinced that the market for turbochargers will continue to grow in the years ahead given this product will play a key role in emission reduction solutions,” Frank Tang, co-founder and CEO of FountainVest, said in a statement. “With its solid R&D foundation and advanced manufacturing technology, BMTS is well positioned to capitalize on this favorable industry trend.”

Founded in 2008 as a joint venture between German engineering firms Bosch and Mahle, BMTS produces a components for the automotive industry including powertrains and tailor-made exhaust gas turbochargers for both passenger and commercial vehicles. It employs about 1,300 people across Europe and China.

Demand for turbochargers has been connected to the development of hybrid-drive cars. In China, this trend has been further supported by regulatory pushes around emissions and the emergence of increased cross-border partnering in the clean car space. The Chinese government plans for electric vehicles to represent about one-fifth of car sales by 2025.

Recent automotive activity by FountainVest includes the sale of Key Safety Systems to Shanghai-listed Ningbo Joyson Electronic Corporation for $920 million. The US-based airbags and seat belts supplier was acquired by FountainVest in 2014 at a valuations said to be around $700-800 million. 

FountainVest closed its thrid fund last year at the hard cap of $2.1 billion with an aim to target more large buyouts. 

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• Topics
• Greater China
• Europe
• Industrials
• Cleantech
• Buyouts
• China
• manufacturing
• automobiles
• Fountainvest Partners