Chaozhou Three-Circle (Group) Co., Ltd. (CCTC) acquires world leader in the area of innovative microdispensing systems, VERMES Microdispensing GmbH
The Background China is home to a very large number of manufacturing companies which not only supply the local or Asian market, but also export products worldwide. The country is the leader or occupies leading positions in terms of output numbers in many manufacturing areas e.g. automobiles, mobile phones or medical technology products. Over the last years the requirements on products have constantly risen as e.g. due to digitization more technology has to be fitted into these products. For this purpose highly advanced production machines are needed where quality and precision is key. A lot of potential exists for upgrading production processes in China and worldwide to match the increased product requirements.
The Deal CCTC expands its product portfolio by microdispensing systems through the acquisition of VERMES Microdispensing. This transaction unites two leading manufacturing companies which both have blue-chip customers worldwide. IEG - Investment Banking Group provided advice to the buyer as an M&A advisor.
The Partners CCTC, founded in 1970, is a listed company with headquarters in Chaozhou/China and more than 6,000 employees. The company is an expert in advanced materials and a leading manufacturer of e.g. high-tech ceramic products, inorganic powders and electrode slurry. CCTC is continuously ranked among the Top 10 of China‘s Top 100 electronic component manufacturers with a large customer base including Blue Chip companies. VERMES Microdispensing, with headquarters in Otterfing near Munich, is the world leader in the design and manufacture of innovative microdispensing concepts and systems for adhesives, silicones, greases, solvents and other fluids. The solutions and products of VERMES Microdispensing are utilized in several areas including e.g. the automotive, electronics, medical technology, precision mechanics, semiconductor and SMT industry.
The Perspective The products of VERMES Microdispensing support modern manufacturing processes in a variety of industries and contribute to increased throughput, improved quality and lower production costs. VERMES Microdispensing will profit of CCTC’s strong R&D capabilities, large customer base and in depth-market knowledge. Consequently this will facilitate the process to conquer the large potential of the Chinese market where „Made in Germany“ is a highly regarded seal of quality.