Luxshare goes global in dashboard electronics with ZF deal
Luxshare, a major player in the Chinese computer, communications and medical sectors, just went global in the auto industry.
In a deal announced last week, Luxshare acquired ZF Friedrichshafen AG's body control systems unit, an auto component business that gives Hong Kong-headquartered Luxshare a network of automotive factories and customers around the world.
The acquisition -- reportedly for less than $1 billion (6.5 billion yuan) -- gives Luxshare nearly 6,000 employees at 16 locations in 11 countries, and 11 sales and engineering offices in five countries.
Until now, Luxshare had focused on China’s consumer and industrial electronics markets with cables, circuits and connectors for computers, communications devices and medical equipment.
Luxshare intends to operate its automotive business as an independent company and maintain its headquarters in Radolfzell, Germany. ZF said the body control systems management team will continue to lead the business.
The body control division produces steering columns; electronic control panels; radio frequency electronics; heating, ventilation and air conditioning controls; and remote keyless and passive entry access systems, among others.
ZF, with global automotive sales of of 35 billion euros (272 billion yuan) last year, has been remaking its own identity in recent years to capitalize on autonomous drive technologies.
"Even though the global body control systems business is operating successfully and on a financially healthy basis, it is a logical decision that will enable the global body control systems business to better develop outside of the ZF Group," said Franz Kleiner, ZF's board member for North America, in a statement.
Terms of the sale were undisclosed, but this year in commenting on reports that the business unit was for sale, ZF CEO Stefan Sommer was quoted confirming it could go for $1 billion.
The acquisition -- reportedly for less than $1 billion (6.5 billion yuan) -- gives Luxshare nearly 6,000 employees at 16 locations in 11 countries, and 11 sales and engineering offices in five countries.
Until now, Luxshare had focused on China’s consumer and industrial electronics markets with cables, circuits and connectors for computers, communications devices and medical equipment.
Luxshare intends to operate its automotive business as an independent company and maintain its headquarters in Radolfzell, Germany. ZF said the body control systems management team will continue to lead the business.
The body control division produces steering columns; electronic control panels; radio frequency electronics; heating, ventilation and air conditioning controls; and remote keyless and passive entry access systems, among others.
ZF, with global automotive sales of of 35 billion euros (272 billion yuan) last year, has been remaking its own identity in recent years to capitalize on autonomous drive technologies.
"Even though the global body control systems business is operating successfully and on a financially healthy basis, it is a logical decision that will enable the global body control systems business to better develop outside of the ZF Group," said Franz Kleiner, ZF's board member for North America, in a statement.
Terms of the sale were undisclosed, but this year in commenting on reports that the business unit was for sale, ZF CEO Stefan Sommer was quoted confirming it could go for $1 billion.
