Chinese autopart maker buys KSM from European buyout firm

Cognetas acquired KSM in 2005 via a EUR155 million ($222 million) management buyout and rebranded the company to its current incarnation. KSM develops light metal casting products for the automotive industry. According to Cognetas, KSM has sales of more than EUR290 million ($415 million), with a customer base that includes Volkswagen, Daimler Chrysler, BMW, Ford and Porsche.

Cognetas has invested more than EUR135 million ($193 million) during its tenure as KSM's owner to promote the company's five production sites in Germany and one in the Czech Republic, AVCJ's sister publication in Europe, Unquote, reported.

KSM reported just over EUR400 million ($573 million) in revenues for the 2010 fiscal year, which represents a 39% increase since 2005 when the firm was acquired. The sale is Cognetas' third exit of a German company this year.

KSM's acquisition by CITIC Dicastal marks the first overseas purchase for the Chinese company, which is a global supplier of cast-aluminum wheels for the auto sector and part of the CITIC Group conglomerate. Zuo Xu, president of CITIC Dicastal, said that the acquisition will broaden the company's technical capabilities and promote expansion.

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• Topics
• Greater China
• Exits
• Cognetas