Taiwan's Fusheng in Germany acquistion

Oaktree Capital Management portfolio company Fusheng Industrial has acquired Germany-based ALMiG Kompressoren, underscoring the continuing cross-border trend.

Taiwan’s Fusheng Industrial, 48 percent owned by Oaktree Capital Management, has acquired German compressor manufacturer ALMiG Kompressoren, according to a joint statement.

William Kerins, managing director of Oaktree, declined to disclose the amount of the transaction, but added “this represents a material acquisition for Fusheng”.

Fusheng Industrial, founded in Taiwan by Hou Teng Lee in 1953, produces a range of industrial compressors and has manufacturing capabilities in China. ALMiG specialises in energy-efficient and oil-free industrial air compressors with production sites in Europe and the US.

This transaction probably represents a trend over the next 5-10 years. You’ll see more Asian companies investing in European and North American companies. There are real strategic reasons for doing this.

William Kerins
managing director
Oaktree Capital Management

Fusheng relied on relationships with Taiwan banks for much of the financing, though internal funds of the company and German banks also played a role, Kerins told PE Asia.
 
Oaktree was involved in the execution of the transaction, including negotiation of financing documents and the sale and purchase agreement with the seller, but the two companies had already known each other through industry contacts. 

“The companies have known each for some time so no bank was involved in the introduction,” Kerins said. “They’ve been working together for several years and the decision to begin serious discussions probably took place two years ago.”

Kerins said the acquisition was a strong strategic fit for Fusheng, which will get an expanded geographic footprint in Europe and world class technology in specific high-growth sectors such as the oil-free sector.

“This transaction probably represents a trend over the next 5-10 years. You’ll see more Asian companies investing in European and North American companies. There are real strategic reasons for doing this.”

Los Angeles-based Oaktree is a global investment management firm focused on alternative markets. It has $81 billion in assets under management.