Punch Powertrain NV ("Punch Powertrain") develops and manufactures fuel efficient continuously variable transmissions, hybrid powertrains and electrical drive systems for passenger cars.
The existing shareholders wished to retain their investment in Punch Powertrain to capture the greater exit potential in the future and were fully committed to supporting the next phase of the company's growth, fuelled mainly by demand from Asia. At the same time, the shareholders recognised the opportunity to partner with an experienced professional investor in the region with a successful industry track record and strong local connections.
DC Advisory ("DC") was appointed to secure an Asian minority investor to work alongside management and the existing shareholders to facilitate the next chapter of Punch Powertrain’s Asian growth strategy.
New Horizon Capital, a leading Chinese private equity fund based in Beijing, acquired a 30% stake in the company.
Cor van Otterloo, CEO, will continue to lead the management team, with New Horizon investment professionals joining the Board.
The DC Advisory team provided hands-on, professional support and advice throughout the process. Their understanding of the automotive sector and expertise in cross-border deals ensured an excellent result for the company.
DC Advisory’s tactical advice, along with their access to and knowledge of the Asian financial investor universe, was instrumental to the successful outcome of this transaction. We have been impressed by their professionalism, international capabilities and bespoke process management.
We are delighted with the outcome of the process, having benefited from DC Advisory’s expertise in the Asian private equity community to identify an outstanding partner in New Horizon.
Asian financial investors are increasingly making acquisitions in Europe to gain technology for their domestic markets; a dynamic which we believe is highly advantageous for IP-driven European businesses. This transaction is further evidence of the strength and value of DC Advisory’s access to Asia and skill in executing cross-border M&A.
Securing a Chinese investor of the stature of New Horizon will help Punch Powertrain to increase its market share in China and develop its relationships with Chinese OEMs. Punch Powertrain is a strong business with an impressive management team and a great future; we are delighted to have helped the company and its shareholders to achieve this result.