Background 

  • Jiecang Linear Motion Technology Co (Jiecang) is a leading Chinese high-tech enterprise specialising in the research, development and production of intelligent linear drive control systems. Their advanced intelligent equipment and production management offers three product systems, including medical care, smart office and home technology 
  • Jiecang is currently developing a national industry standard direct current electronic push rod motor, which provides professional intelligent control and transmission solutions for global medical rehabilitation, elderly care, smart homes and other related sectors 
  • Jiecang has established a working relationship with Provincial Enterprise Research Institute, and established a joint laboratory with Shanghai Jiatong University to focus on developing cutting edge technology
  • In September 2018, Jiecang was successfully listed on the main board of the Shanghai Stock Exchange
  • Headquartered in Austria, Logic Endeavour Group (LEG) is a global leading provider of mechatronics and electronic solutions. LOGICDATA owned by LEG, is a favoured product developer amongst world-class furniture brands

Process

  • DC Advisory (DC) was engaged in early 2021 to act as financial advisors to Jiecang
  • Working closely with Jiecang, DC provided comprehensive services, including assisting with transaction structure, due diligence, valuations and negotiations 
  • The deal team overcame various obstacles, including the impact of Covid-19, to help the company reach a successful outcome 

Outcome

  • On 7 July 2021, Jiecang announced its acquisition of LEG through wholly owned subsidiaries and self-raised funds
  • This transaction aids LEG in establishing its brand in the European and US high-end market, strengthening their market share across the regions
  • Jiecang's global operations and efficient manufacturing capacity will also further enhance LOGICDATA's industry status and market share 

"We are thankful to DC Advisory for their support and guidance on this transaction. Their in-depth knowledge of the Industrials sector and invaluable insights on running a cross-border M&A process really made a difference in forging this partnership. We look forward to the next chapter of growth for both companies”

Ren Chang Hu
Chairman, Jiecang

"It has been a pleasure working with Jiecang to complete their acquisition of Logic Endeavour Group. With Jiecang’s guidance we are confident that LEG will continue to expand its market share across Europe and the US. For DC Advisory, this is another example our ability to leverage our Asian and European market knowledge to make a difference for our clients."

Daniel Weng
Director, DC Advisory