Subject: Fwd: AVIC/WSJ
From: "James Bulger" <[email-masked]>
To: "Hunter Biden" <[email-masked]>, "Devon Archer" <[email-masked]>
Date: Wed, 1 Jul 2015 06:54:18 -0400

FYI. This looks like the BHR deal no mention of BHR should be an
interesting call with Xin tomorrow morning
Jimmy

---------- Forwarded message ----------
From: *Eileen Kerwin* <[email-masked]>
Date: Wednesday, July 1, 2015
Subject: AVIC/WSJ
To: James Bulger <[email-masked]>

   - BUSINESS <http://www.wsj.com/news/business>
   -  ASIA <http://www.wsj.com/public/page/news-asia-business.html>
   -  ASIAN BUSINESS NEWS
   <http://www.wsj.com/news/types/asian-business-news>

China’s AVIC Agrees to Buy U.S. Auto-Parts MakerNexteer investor AVIC to
buy Henniges for about $800 million including debt
[image: Attendees walk past the Aviation Industry Corp. of China hall
during the China International Aviation & Aerospace Exhibition in Zhuhai,
Guangdong province, China, on Tuesday, Nov. 11, 2014.]ENLARGE
Attendees walk past the Aviation Industry Corp. of China hall during the
China International Aviation & Aerospace Exhibition in Zhuhai, Guangdong
province, China, on Tuesday, Nov. 11, 2014. PHOTO: BRENT LEWIN/BLOOMBERG
NEWS
By
RICK CAREW And

GILLIAN TAN
June 29, 2015 12:05 p.m. ET
1 COMMENTS
<http://www.wsj.com/articles/chinas-aviation-industry-corp-agrees-to-buy-auto-parts-maker-henniges-1435593585?cb=logged0.764149033697322#livefyre-comment>

China’s growing ambition to acquire auto technology is set for a boost as a
state-run aviation giant has agreed to buy U.S. car-parts supplier Henniges
Automotive Holdings Inc.

Aviation Industry Corp. of China, known as AVIC, has agreed to buy Henniges
for about $800 million including debt, according to people familiar with
the matter. The deal, which is awaiting regulatory approval, could be
announced soon, one of the people said.

Littlejohn & Co., the private-equity owner of Henniges, put the Auburn
Hills, Mich., company up for sale last year and entertained interest from a
number of possible buyers. The company, which Littlejohn bought in 2010
from Wynnchurch Capital Ltd., specializes in vehicle-sealing and
anti-vibration technology. Henniges had $285 million of debt outstanding as
of May 2014, according to debt-ratings firm Moody’s Investors Service
<http://quotes.wsj.com/MCO>. <http://quotes.wsj.com/MCO> The company’s
revenue was $825 million in 2014, according to a person familiar with the
matter.
[image: Aviation Industry Corp. of China, known as AVIC, is poised to
acquire U.S. auto parts making Henniges Automotive after previously taking
a stake in car-parts supplier Nexteer Automotive Group.]ENLARGE
Aviation Industry Corp. of China, known as AVIC, is poised to acquire U.S.
auto parts making Henniges Automotive after previously taking a stake in
car-parts supplier Nexteer Automotive Group. PHOTO: BRENT LEWIN/BLOOMBERG
NEWS

The deal would represent the largest acquisition by a Chinese company of a
U.S. auto-related asset to date, according to Dealogic data. Chinese
companies have been busy on the global auto stage lately. In March, China
National Chemical Corp. announced a $7.7 billion bid
<http://www.wsj.com/articles/china-national-chemical-corp-to-buy-controlling-stake-in-pirelli-1427065364>
to
buy Italian tire maker Pirelli & C. <http://quotes.wsj.com/PPAMF>
<http://quotes.wsj.com/PPAMF> SpA, which would be the largest acquisition
in the sector globally by a Chinese company.

China’s ambition to grow bigger in the auto-parts market is driven by its
desire to own a greater piece of the global supply chain in industries
where its consumers are big buyers. China is the world’s largest market for
sales of automobiles.

Last year, Henniges acquired full control of its local China operations,
Beijing Wanyuan-Henniges Sealing Systems Co. for an undisclosed amount.

AVIC has been an active acquirer of U.S. assets in the automotive and
aviation industries. It owns a stake in Michigan-based Nexteer Automotive
Group <http://quotes.wsj.com/HK/XHKG/1316> Ltd.
<http://quotes.wsj.com/HK/XHKG/1316>, which develops steering technology.
Nexteer was formerly General Motors <http://quotes.wsj.com/GM> Co.
<http://quotes.wsj.com/GM>’s in-house steering business. A unit of AVIC
acquired
<http://www.wsj.com/articles/SB10001424052748704728004576176243061806326>
Minnesota-based
private-aircraft manufacturer Cirrus Industries Inc. in 2011.

Write to Rick Carew at [email-masked]
<javascript:_e(%7B%7D,'cvml',[email-masked]');> and Gillian Tan at
[email-masked] <javascript:_e(%7B%7D,'cvml',[email-masked]');>

-- 
James J. Bulger
Chairman
Thornton Group LLC
14 Beacon Street, Suite 804A
Boston, MA 02108
Office tel: 617.248.944