Project:CPIC acquiring Capivari

 

Highlights:

 

Brief Introduction:

 

Chongqing Polycomp International Corporation (CPIC) is a high-tech company specializing in the research and manufacturing of high-performance material fiberglass and sizing. It is a controlled subsidiary of YYTH Group, a Shanghai listed company. CPIC has enjoyed rapid growth by technology innovation and output, and is now becoming one of the six pillar industries of YYTH. It is also one of the top three fiberglass manufacturers in China and one of the top five fiberglass manufacturers in the world.

 

Background:

 

In 2010, world’s largest manufacturer of fiberglass Owens Corning Group (OC) USA announced to split-off of a model facility OCV Capivari Fibras de Vidro. Because OC is a US listed company, it was required to give tender offer globally. Project Capivari has provided CPIC with a valuable opportunity for global expansion, but there were also challenges, competitions and uncertainties facing the tendering process.

 

 

Challenges:

 

The bidding project faced a strong seller and tight timeline,

And competitive buyers from home and abroad.

Work needs to be carried out and synchronized in China, US and Brazil.

 

DWC played a key role in:

 

Helping the client to clarify the acquisition strategy of Capivari

Delivering the valuation of the target company with high efficiency and based on the valuation report deliver the bidding proposal ahead of competitors

Leading the intermediary team and coordinated the progress of the accounting and legal firm

Organizing and participating in the DD and arrangements of tax structure

Participating in the business negotiations until the signing of SPA

Assisting the client to obtain government approval, until

On-time closing of the transaction

The project was carried out with high efficiency. It took six months from the initiation to the signing of SPA to closing. The eventual price was significantly lower than the original tender price and DWC receive wide applause from all parties.