Oaklins HFG has advised Dussmann Group to divest its China subsidiaries
Oaklins’ team in Shanghai has advised Dussmann Group to sell its subsidiaries Dussmann Property Management (Shanghai) Co., Ltd and Dussmann Service Hong Kong Limited to CITIC Capital, assisting Dussmann to complete its strategic geographic upgrade. This is Oaklins HFG’s fifth deal in the past two years advising multinationals on divesting their China subsidiaries.
With more than 66,0000 employees and activities in 17 countries, the Dussmann Group is one of the largest private multi-service providers worldwide. Its service includes facility management (FM), technical building equipment and engineering, nursing and care for the elderly, in-house corporate child-care, and retail media.
The team at Oaklins HFG China understood our vision and strategic criteria. Their access to local investors in the Chinese market, expertise of working international processes and collective team effort have made a contribution to the successful completion of the transaction.Sebastian Bahnsen, Head of M&A, Dussmann Group
Dussmann Property Management (Shanghai) Co., Ltd specializes in providing facility management and integrated facility management (IFM) services in mainland China with its headquarters in Shanghai. Dussmann Service Hong Kong Limited has been providing facility management services in Hong Kong for 23 years and started to provide IFM services in 2017.
CITIC Capital is a private equity firm based in China. The firm manages over US$26 billion of capital across 100 funds.
Oaklins’ team in Shanghai advised the seller and led the whole process, identifying and communicating with potential buyers, providing valuation guidelines, facilitating management presentations, assisting due diligence and negotiating key terms in the SPA. Oaklins’ team in Germany helped to pitch the seller in this transaction.
This is the fifth sale of a multinational corporation's China subsidiary completed by Oaklins HFG in the past 24 months. We have observed two directions of such subsidiaries’ strategies in China: investing in or acquiring local Chinese companies to enhance competitiveness in the increasingly competitive Chinese market, or exiting with a reasonable company valuation when they still have a certain market share in China. We expect such trend to continue in the next two to three years.Angela Chen, CEO, Oaklins HFG China