January 25, 2021 | Ad hoc announcement pursuant to Art. 53 LR
Burckhardt Compression acquires remaining 40% of Shenyang Yuanda Compressor
The contract to acquire the remaining 40% of Shenyang Yuanda Compressor, based in Shenyang, China, was signed on January 25, 2021. Closing is expected within the next two weeks.
In September 2020 Burckhardt Compression announced the signing of a memorandum of understanding to acquire the remaining 40% of Shenyang Yuanda Compressor, based in Shenyang, China. The contract to acquire the shares was signed on January 25, 2021. Closing is expected within the next two weeks. Burckhardt Compression has owned 60% of Shenyang Yuanda Compressor since May 2016. The shares will be transferred with retrospective effect from January 1, 2021, meaning that Shenyang Yuanda Compressor’s total net profit from this date is attributable to the shareholders of Burckhardt Compression. The parties have agreed not to disclose the purchase price.
Shenyang Yuanda compressor employs approximately 650 employees in China and generated sales of around CHF 100 million in 2019. Since the initial interest in Shenyang Yuanda Compressor, the company has expanded into more segments of the market, the product portfolio has been broadened to address a wider range of market needs, and Burckhardt Compression has gained direct access to a well-established local supply chain. Compressors manufactured by Shenyang Yuanda Compressor have been available in selected export markets through the international distribution and sales channels of Burckhardt Compression since 2019.