Robert Bosch to sell starters and generators subsidiary to Chinese consortium for $595 mn

German multinational engineering and electronics company Robert Bosch GmbH (Bosch) today struck a deal to sell its starters and generators business SG Holding to Chinese consortium for €545 million ($595 million).

The consortium comprises Chinese automotive supplier Zhengzhou Coal Mining Machinery Group Co Ltd (ZMJ) and private equity firm China Renaissance Capital Investment (CRCI).

ZJM and CRI plan to fund the deal through €440 million in internal resources, while the remainder through external bank financing.

In mid-2015, Bosch announced it was exploring strategic options for realigning the division, which included a sale.

Bosch said that it is convinced that the division's competitiveness can be increased and that further stimuli for growth can be created.

SG Holding operates in 14 countries, employs around 6,500 people, and has annual sales of more than €1 billion ($1.1 billion).

The deal is expected to help SG Holding to expand its footprint the world's largest automotive market.

ZMJ is a major Chinese automotive supplier and a manufacturer of engine components for commercial vehicles and passenger cars.

''We are very pleased that we can now add to and successfully further extend our business with these new associates, their expertise, and the excellent products of the Starter Motors and Generators division. In the future, we want the Starter Motors and Generators division to play a central role in our company,'' said, Chengyao Jiao, CEO of ZMJ.

''ZMJ will support SG in further expanding its competitive product portfolio. Improved regional presence, especially in Asia, and will allow SG's business to be expanded sustainably and profitably,'' he added.