Rebirth 76: Industrial Internet Empire

Bern, Switzerland.

Headquarters of Wilder Heilbrugge AG.

The news that the president of Zhiyuan Group made a special trip to visit made Hans Wild feel a little uneasy...

Wilder-Heilbrugge is a precision instrument manufacturer. Its main business is microscopes, medical diagnostic instruments, and precision industrial measurement and mapping instruments. Basically, it has nothing to do with the business of Zhiyuan Group.

But I heard that Zeiss Jena Public Enterprises has been fully acquired by Merlo Bank, a subsidiary of Zhiyuan Group. Zeiss is a direct competitor of Wilder. Could it be that Zhiyuan Group wants to acquire Wilder-Heilbrugge Precision Instrument Company?

With a lot of questions, Hans Wilder personally met with Yang Mo and his party.

After a brief exchange of greetings, Yang Mo said with a slightly stiff German smile: "Mr. Wilder, you should also have heard that Merlo Bank has just acquired all the shares of the Zeiss Jena public enterprise. The Zeiss Jena factory is engaged in precision instrument manufacturing. We have a certain amount of technology accumulation, but the production capacity is insufficient. I wonder if Mr. Wilder has any plans to sell Wilder-Heilbrugge Precision Instrument Company?"

Yang Mo euphemistically expressed his determination to get deeply involved in the field of precision instrument manufacturing. His meaning was very clear. Through the merger and acquisition of several companies of the same type, the production capacity of public enterprises in Zeiss Jena could be quickly increased. As the hometown of precision machinery, Switzerland It is undoubtedly the best choice for mergers and acquisitions.

This is the barbarism and tyranny of capital. Joining before the fight is over and joining after the fight is over are a completely different price!

"Wilder's operating income is growing steadily and its financial situation is good. It is the best period for development. Why should I sell?" Hans Wilder asked puzzledly.

"Mr. Wilder, maybe it was as you said two years ago that the revenue was stable and the cash flow was abundant, but that may not be the case now! Times may be even more difficult in the next few years!" Yang Mo said with a faint smile.

"I would like to hear Mr. Yang's reasons!" Wilder said angrily.

Yang Mo pretended not to see it and continued: "Three years ago, Wilder-Heilbrugge AG acquired a majority stake in the Leitz family and became the majority shareholder of Leica. That year, Leica camera sales in the North American market reached 800 million. When the US dollar reached its peak, two years later, the Leitz family withdrew from Leica and sold all remaining shares to Wilder. Leica camera sales in the North American market fell off a cliff. This year, it should not even be half of the peak, right?"

Hans Wilder shrugged and said indifferently: "So what? We spent less than 7500 million US dollars on the acquisition of Leica, and the drop in sales will not affect his ability to make the world's best and most expensive Here comes the camera!”

"$7500 million may not be much, but the workers at Leica's three factories in Canada, Portugal, and Germany need to be supported. Their salaries should not be low, right? The continued decline in Leica camera sales is a high probability event, Wilde-Heilbrough Ge Co., Ltd. will slowly be dragged down..." Yang Mo said unhurriedly.

Hans Wilder had to admit that Zhiyuan Group had done a lot of homework. The current situation of Leica was indeed worrying. Wilder-Heilbrugger's investment in Leica failed very badly, and the board of directors was already preparing to sell Leica.

Although he wholeheartedly agreed with Yang Mo for speaking out about Wilder-Heilbrugger's pain points, Hans Wilder still insisted on saying: "Leica is not a problem for us. Chanel and Hermès are both They have shown strong interest in acquiring Leica and believe that Leica’s quality and business philosophy are very consistent with their corporate culture..."

Yang Mo chuckled and said: "Leica is a precision manufacturing company, which requires a large number of top technicians and researchers to ensure the company's competitiveness. You can't just sew a leather bag and do good marketing to harvest consumers. Treat Leica as a luxury product." Running a business is not an idea…”

Hans Wilder felt a little irritated in his heart. No matter what you said, you made it sound like Wilder Hellbrugger was about to be dragged into bankruptcy protection by Leica!

But after thinking about it, Wilder-Heilbrugge does not have abundant cash flow. If it can introduce strategic investment from Zhiyuan Group, it would be a good choice.

Thinking of this, Hans Wilder said: "Mr. Yang, Wilder-Heilbrugge will not be sold as a whole for the time being. There is indeed a need for financing. We plan to take out 25% of the equity and obtain US$1.25 million in the capital market. financing!”

Yang Mo chuckled and said: "Mr. Wilder is really good at calculating! As far as I know, when Wilder-Heilbrugger acquired Leica, the market value was less than 1.5 million US dollars. In just three years, the valuation has inflated. To US$3.75 million, this financial leverage is playing beautifully..."

Hans Wilder said with a wry smile: "This is because the company's main business is growing rapidly. Switzerland has the best craftsmen in the world and has the reputation of the "home of precision manufacturing" in Europe. I admit that Leica is a failed merger. If it weren’t for Leica’s drag, the valuation would be higher!”

Yang Mo nodded and said regretfully: "Leica had a short-lived glory. When they swept the global high-end market, Canon and Nikon, Leica's imitators, were rising in other ways! Japanese cameras are in the combination of mechanics and electronics. China continues to expand its territory, and Leica has finally been pushed out of the altar. Sales continue to plummet, and it is almost impossible to restore its former glory..."

"Mr. Yang, what about equity financing?" Hans Wild asked tentatively.

Yang Mo thought for a long time and then said: "It is not impossible to change the overall acquisition to partial equity financing. You should have guessed: Zhiyuan's original intention of trying to acquire your company is because the Zeiss Jena Public Enterprise will be involved in coordinate surveying in the next few years. In the fields of machines, surveying and mapping software, microscopes, medical diagnostic instruments, etc., we are launching all-round competition with Heidenheim Zeiss Optical Company. We urgently need to quickly increase production capacity and reduce production costs in a short period of time..."

Hans Wilder agreed deeply, nodded and said: "Although Wilder-Heilbrugge and Zeiss have always been competitors, our products are also complementary to a certain extent, and we can form effective sales, production, and R&D links. complementary..."

After Yang Mo thought for a while, he shook his head and said: "No! Leica's overseas factories are too heavy a burden and will drag down the parent company! If Zhiyuan Group acquires it as a whole, it can be independent and kicked out to the semiconductor company under the group, even if Let him temporarily become a foundry..."

Hans Wilder's eyes lit up, this was a good opportunity to get rid of the burden of Leica, and he quickly agreed: "Leica still has very powerful technological accumulation in optical instruments and precision manufacturing, and it is quite suitable to join the semiconductor industry. company……"