Fangda Partners assisted Voneseals Technology (Shanghai) Inc. (stock code: 301161, “Voneseals”) in its acquisition of a 51% equity stake in Shanghai Garnor Sealing Technology Co., Ltd. (“Shanghai Garnor”) for a consideration of RMB210 million, successfully completing this material asset restructuring transaction.

Voneseals is a high-tech enterprise that primarily engages in the research, development, production and sales of hydraulic and pneumatic sealing products. It possesses modified polyurethane sealing material technology. Voneseals’ main products include hydraulic sealing components, hydraulic seal kits, and other related hydraulic sealing products, as well as pneumatic sealing components, oil seals, and track seals among other sealing products. Shanghai Garnor focuses on high-performance plastic seals and high-performance rubber seals, providing comprehensive sealing system solutions to related customers. Its core products are widely used in oil and gas equipment (specialized oil wellhead equipment and seals for downhole tools in oil wells), engineering machinery industry, industrial equipment, industrial control valves, general industry, and more. The two companies both belong to the sealing components industry and specialize in different industrial segments.

This material asset restructuring is a major transaction in the domestic sealing industry, which will contribute Voneseals to implement its strategy of “multiple markets, multiple materials, multiple business models” and accelerate the localization process of high-tech sealing components in various applications by integrating of high-quality resources in the sealing industry.

Fangda acted as legal counsel to Voneseals in the transaction and provided comprehensive legal services, including conducting legal due diligence, internal restructuring of Shanghai Garnor, designing restructuring transaction schemes, drafting and negotiating of transaction documents, handling regulatory feedback, information disclosure and transaction delivery. The Fangda team was led by partner Jane Chen and team members included Qianyuan Li and Chao Zhang.