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Meili High Technology announced its plan to invest EUR63.7 million (approximately USD74.1 million) in acquiring a Netherlands-based company that owns a leading German trailer hook manufacturer along with associated factories and dealerships worldwide.
The target company’s ACPS Group manages ORIS, a well-known brand that enjoys high customer loyalty within the auto trailer hook market. The acquisition includes factories located in Germany, Hungary, Mexico, and China, serving long-term automotive clients such as Volkswagen Group, Mercedes-Benz, BMW, and Tesla.
Trailer hooks are devices attached to a vehicle’s front or rear bumper or chassis, used for towing or recovery. They are typically manufactured from high-strength steel capable of withstanding significant tension during towing operations.
This acquisition allows the company to expand its European and US sales channels, access core technologies, and strengthen the ORIS brand to create synergies with its existing auto parts business, based in Shaoxing.
Additionally, the company plans to adopt a manufacturing model that produces car components in China and assembles them overseas post-acquisition. It intends to leverage its existing manufacturing facilities and supply chain networks to help reduce raw material processing costs for ACPS factories and to better manage international trade barriers and supply chain disruptions.
Through this partnership, the company aims to build long-term relationships with major global clients, thereby shortening development cycles and lowering costs associated with expanding into international markets.
Following the announcement, shares of the firm traded at CNY33.93 (around USD4.76), a 3.6% decline from previous levels, after an intraday increase of up to 5.5%.
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