On the evening of July 10th, Luxshare Precision announced that the company has successfully completed the delivery of 50.1% equity of German century old automotive wiring harness company Leoni AG and 100% equity of its wholly-owned subsidiary Leoni K through its Singapore subsidiary. It is worth noting that the scope of this transaction covers all the underlying assets within the agreement, except for the Indian subsidiary.
In a September announcement last year, Luxshare Precision disclosed that it would acquire 50.1% equity of Leoni AG for 205 million euros and 100% equity of Leoni K for 320 million euros, with a total consideration of 525.41 million euros (approximately RMB 4.1 billion at the exchange rate at that time).
Lixun Precision is a leading technology manufacturing company in China and a core supply chain enterprise for Apple, establishing its industry position through consumer electronics outsourcing. Since its establishment, the company has expanded its diversified business through multiple rounds of cross-border acquisitions, forming three major business matrices: consumer electronics, automotive, communication, and data centers. Its manufacturing bases are located in more than 10 countries around the world, and it is currently planning to go public in Hong Kong to accelerate its global layout.
In 2013, it acquired SUK from Germany to enter the automotive plastic parts field, and in 2018, it acquired the TRW body control system division of ZF; In 2025, we will acquire Wentai Technology's consumer electronics ODM business in stages (with a total consideration of approximately 4.389 billion yuan), take over multiple subsidiaries and asset packages in Shenzhen, Huangshi, and other areas, and strengthen our Android ecosystem integration capabilities.
Founded in 1917, Lenny is the largest automotive wiring harness supplier in Europe and the fourth largest globally, serving over 80% of global automotive brands such as BMW, Mercedes Benz, and Volkswagen. In recent years, due to high debt and poor management, it has been on the brink of bankruptcy.
This acquisition is a crucial step for Luxshare Precision to expand its target of Tier 1 suppliers. Lenny has production bases in 26 countries worldwide, which can provide localized production capacity support for Luxshare Precision and accelerate its strategic transformation from a leading consumer electronics foundry to a Tier 1 automotive company.
The integrated synergies will reconstruct the global automotive wiring harness competition landscape. On the one hand, Lixun Precision can rely on Lenny's localized production capacity in Europe to provide core component support for Chinese car companies going global; On the other hand, by introducing experience in intelligent manufacturing and cost control, Luxshare Precision plans to optimize the global production capacity utilization rate of Lenny, with the goal of achieving profit and loss balance by 2025 and equaling its own wire harness business profitability level within 5-7 years. At the same time, the current wave of China's new energy vehicles going global is surging, and the global penetration of local supply chains is entering a new stage driven by technological synergy and cost advantages.
