ZHONGDING GROUP takes majority stake in KACO GMBH

The acquisition of 80% of KACO by the Zhongding group from the Brazilian Sabo group marks the culmination of a purely financial ownership cycle, paving the way for a phase of cross-border industrial consolidation aimed at creating a global leader in technical sealing. Under previous ownership, KACO had consolidated its technological foothold in Germany and structured its vertical integration, but faced balance sheet constraints and a lack of commercial leverage to deploy its cutting-edge technology on a global scale, particularly in Asia and North America. This transaction removes these hurdles by backing KACO with the financial might of Anhui Zhongding, while also integrating Sabo USA to unify the group's commercial presence across the three major global automotive markets. The chosen integration model preserves KACO's operational autonomy, with the company to be attached to the acquirer's European holding company based in Austria, while maintaining its decision-making center in Heilbronn. This ensures continuity in relationships with the historical management team and technical stability for premium European clients. Post-acquisition priorities will focus on the immediate deployment of KACO's technologies within Zhongding's industrial apparatus in Asia to capture new programs from Chinese manufacturers, the rationalization of global polymer procurement, and the financing by the new majority shareholder of the capacity investments required to support the growth of the new US subsidiary.