DeHeng Advises Auto Aftermarket Unicorn
Carzone in Corporate Consolidation
2018-08-24
On August 22, 2018, Carzone Auto Parts Co., Ltd. (hereinafter referred as "Carzone"), a leading service provider for auto parts suppliers, car.tmall.com of Alibaba, and qccr.com, a leading car maintenance platform under Jingu Group, announced corporate consolidation into a new company and the development of a new retail support system for car services. DeHeng advised Carzone on the corporate consolidation.
Carzone is a renowned service provider for auto parts suppliers in China, serving more than 70,000 car repair and maintenance companies in over 20 cities.. It is also a strategic partner or professional repair service network provider for global auto suppliers such as Bosch, Gates, Schaeffler, Sofima and Philips.
After completion of the transaction, Alibaba, qccr.com and Carzon will be able to push ahead with the establishment of an auto service support system for the automotive aftermarket and the integration of upstream and downstream businesses including the sale of new and second-hand vehicles, car repair stores and auto parts supply.
The deal involved multiple stakeholders and a complicated structure. The DeHeng team, composed of Zhang Lei, a partner of DeHeng Shanghai office, and lawyers Fang Wen, Zhu Yun, Sun Kai and Li Haoyuan, sorted out the needs at different stages and offered Carzone one-stop legal services by leveraging DeHeng's integrated strengths in domestic acquisition, investment and finance. DeHeng worked closely with the project and legal teams of Carzone and Alibaba, and came up with a scheme that suited all investors after several rounds of consultations and negotiations.
DeHeng has formed long-term strategic partnership with Carzone, playing an important role in the latter's corporate structure formation, domestic M&A strategy, finance, and employee options scheme design. Bearing witness to Carzone's emergence as a unicorn, DeHeng looks forward to future cooperation as Carzone expands its presence in the auto aftermarket.
