Shanghai, China, September 19, 2007 --(PR.com
)-- Business Development Asia LLC ("BDA") is pleased to announce that Global Power Equipment Group ("Global Power"; OTC: GEGQQ.PK) has entered into an agreement with A-TEC Industries subsidiary AE&E Group GmbH, for the sale of Global Power's China boiler business, located in Nanjing, China. The sale comprises Global Power Asia Limited ("GPAL"), a Hong Kong company, including GPAL's 90% ownership stake in Deltak Power Equipment (China) Co. Ltd. ("DPEC"). DPEC was acquired in July 2004, since when it has supported the Heat Recovery Steam Generator ("HRSG") business line of Global Power as a manufacturing facility. It was identified as non-core following the decision to withdraw from the large HRSG market in autumn 2006.
The transaction is expected to close in one month and is subject to certain conditions including Bankruptcy Court approval. The disposal is part of Global Power's strategy to exit from Chapter 11 creditor protection. Both GPAL and DPEC are non-debtor affiliates of Global Power and were not subject to the US Chapter 11 filings.
BDA was the exclusive financial advisor to Global Power in connection to the sale, which was conducted as a competitive auction process.
John Matheson, President and CEO of Global Power, said: "We have valued our relationship with our associates in Nanjing and wish AE&E great success."
Christian Schmidt, Member of the Management Board of A-TEC Industries and of the Supervisory Board of AE&E, stated: "This acquisition in China represents another important step into the Asian growth market for AE&E."
About Global Power
Oklahoma-based Global Power Equipment Group is a leading design, engineering and manufacturing firm providing a broad array of equipment and services to the global energy, power infrastructure and process industries. Additional information about Global Power is available at www.globalpower.com.
Business Development Asia LLC was founded in 1996. BDA assists multinational corporate and financial sector clients to identify and execute acquisitions, divestments, JVs, restructuring and capital raising, in Asia and internationally. The company is headquartered in New York with offices in London, Bahrain, Mumbai, Hong Kong, Shanghai, Seoul, and Tokyo. BDA employs 55 full-time professionals across eight offices, supplemented by a team of senior advisors around the world. BDA’s client list comprises Air Products, Cadbury Schweppes, Celestica, DIC, Dow Chemical, DuPont, Ecolab, Godrej, Great Lakes, Hanjin Shipping, Hercules, Huntsman, Inabata, Johnson Controls, Kimberly-Clark, Lear, Lubrizol, Mars, Molex, Morgan Stanley, Nalco, Parker Hannifin, Reuters, Rohm & Haas, Ryder, Siemens, SigmaKalon, Sumitomo Chemical, TATA Auto Components, Tenneco, Tredegar, Visteon, WR Grace, and the British Government. Further information on BDA is available at www.bdallc.com.
For more information regarding this transaction, please contact Charles Maynard in New York on (1) 212 265 5300 or Mark Webster in Shanghai on (86) 21 5407 5580. For more information about BDA, please contact one of their offices.
BDA transaction team:
Charles Maynard, Managing Director
Jason Song, Associate
Mark Webster, Director
Sherry Zhou, Analyst
Tanya Wang, Analyst
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