KPMG Corporate Finance has advised the shareholders of Covpress International Holdings Limited (“Covpress”) on the sale of the business to Shandong Yongtai Corporation Group Limited (“SYCG”) and T.I.A (GB) Limited.
The transaction represents the second corporate sale to a Chinese buyer during the last three months demonstrating the increasing appetite for inward investment into the UK, particularly in the automotive sector.
Covpress is a leading tier 1 supplier of pressings and assemblies to the automotive sector. The business manufactures structural components for leading OEMs including JLR, Nissan, Renault and GM from its dedicated 33,000 square metre facility in Coventry. The business generates annual revenues in excess of £60 million.
Covpress has been acquired by SYCG, a Chinese tyre manufacturer that was seeking to acquire a UK-based tier 1 supplier to JLR to support its own international growth aspirations.
KPMG undertook a full scope sell-side advisory role including overall management of the project, negotiating the key terms of the deal and working to minimise value leakage throughout the process. In addition, KPMG provided pensions advice designed to mitigate the defined benefit pension scheme risk.
The automotive sector is a key priority for KPMG’s Corporate Finance practice, focusing on tier 1 and tier 2 supply chain businesses. The ongoing success of the UK automotive industry continues to attract overseas investment and M&A activity.
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