CIMC-TianDa completes the deal to acquire 60% stake in Shenyang Jietong and basically extends its fire truck business nationwide
On June 29, CIMC-TianDa Holdings Company Limited and Shenyang Jietong Fire Truck Co. jointly held the equity interest transfer completion ceremony, representing that Shenyang Jietong became a formal member of CIMC-TianDa. With the deal, CIMC has basically extended its fire truck business nationwide and made a solid step forward on the path to the world fire truck crown.
Founded in 1974, Shenyang Jietong is an aerial fire truck the longest-established producer of elevating platform fire trucks, aerial ladder fire trucks and skylift fire trucks appointed by the Ministry of Public Security. Located at Shenyang Daoyi Economic Development Zone and covering a site area of 200,000 square meters and gross production building area of 100,000 square meters, Shenyang Jietong is an important aerial fire truck manufacturer in China. In particular, the company large business network and abundant business resources in the north of China with the northeast three provinces as the core, enjoys great reputation on domestic market, and boasts exceptional profit-making performance. On July 31, 2018, CIMC-TianDa entered a deal to acquire a 60% stake in Shenyang Jietong for 600 million yuan.
According to Zhu Wenyuan, Deputy General Manager of CIMC-TianDa and General Manager of Shenyang Jietong, the businesses of Shenyang Jietong and CIMC-TianDa are complementary. Strategically, after the deal is completed, Shenyang Jietong, Shanghai Jindun (bought out in May) and CFE’s production facility in Sichuan Province will jointly complete the complementary business layout in the southwest, southeast and northeast of China, and enable CIMC-TianDa to extend its fire truck business nationwide.
In addition, Shenyang Jietong has great profit-making ability and nice financial performance, and this will positively contribute to CIMC-TianDa’s business growth. According to CIMC’s prior announcement, Shenyang Jietong made outstanding business performance: it respectively achieved business revenues of 617 million yuan and 654 million yuan in 2016 and 2017, with after-tax profits of 55.172 million yuan and 65.426 million yuan.
Zhu noted that the completion of the deal is of strategic importance for CIMC-TianDa to grow into the world fire truck champion. After joining hands with CIMC-TianDa, Shenyang Jietong will continue to maintain its leading position on the market and improve CIMC-TianDa’s profit-making ability with the highly added value of its major products. In the meantime, CIMC-TianDa will help Shenyang Jietong establish business ties with the world famous aerial firefighting equipment manufacturing enterprises and sell and distribute its products worldwide.