A shift of competition dynamic in the technical textile industry
Oaklins’ team in China has recently advised Beaulieu International Group to sell one of its Chinese subsidiaries, Beaulieu Technical Textiles (Weihai) Co. limited, to Yangzhou Hai Zhong Fabric Co., Ltd.
Beaulieu International Group (B.I.G.) is a leading global specialist in flooring and material solutions. Headquartered in Belgium, B.I.G. has 29 production facilities around the world, and serve customers in 140 countries. B.I.G. employs 4,900 people worldwide and reported a turnover of €2.5 billion in 2021.
Beaulieu Technical Textiles (Weihai) Co. Limited (Beaulieu Weihai) is one of B.I.G.’s major subsidiaries in China. It manufactures and markets woven technical textiles, focusing on carpet backing, artificial grass backing and agro-textile products. Its products are sold to both oversea and domestic markets. Beaulieu is among the best-known brands in this segment, and is highly regarded within the industry due to the high quality of its products. Beaulieu Weihai could produce up to 63mn square meters of technical fabrics per year with nearly 100 full time employees.
Founded in 2016, Yangzhou Haizhong Fabric Co., Ltd. (Yangzhou Haizhong) is a fast-growing technical textile company in China, focusing on the manufacturing and sales of woven carpet backing, artificial-grass backing, agro-textiles and geo-textiles. Its products are sold domestically and oversea, covering over 20 countries. Yangzhou Haizhong is one of Beaulieu Technical Weihai’s major competitors in China. Post transaction, Yangzhou Haizhong will continue to operate Beaulieu Weihai’s business under Haizhong’s own brand.
B.I.G operates business in multiple sectors. Through this transaction, B.I.G exited this non-core business, and the group refocused its strategic resources to other core areas. By acquiring Beaulieu Weihai, Yangzhou Haizhong further consolidated the production capacity of the industry, expanded its presence in oversea markets, and has thus become one of the leading global players in this segment.
During an extremely challenging period with Covid restrictions, and with several pre-closing complications, Oaklins still managed to steer the transaction to a successful end. Very much impressed with their professionalism and flexibility, a true pleasure to work with.Tom Chen, Head of Strategy for Asia region, Beaulieu International Group
Oaklins’ team in China assisted B.I.G to complete this divestiture through a global bidding process, leading vendor due diligence, buyer identification and reachout, valuation guidance, different stages of terms negotiations and closing. Oaklins’ teams in other countries also assisted the transaction in buyer identification and communication.
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