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Overview

China Development Bank provides a loan to ZD USA Holdings, Inc. for the Acushnet Rubber Co. Inc. Acquisition Project

Commitments (Constant USD, 2023)$54,055,414
Commitment Year•2012Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Industry, Mining, ConstructionFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2012
Start (actual)
Dec 28, 2012
End (actual)
Dec 28, 2012

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Policy Banks

  • China Development Bank (CDB)

Receiving agencies

Private Sector

  • ZD USA Holdings, Inc.

Loan description

China Development Bank provides a loan to ZD USA Holdings, Inc. for the Acushnet Rubber Co. Inc. Acquisition Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2012, China Development Bank (CDB) provided a loan to ZD USA Holdings, Inc. — a subsidiary of Zhongding Sealing Parts (USA) Inc. — for the Acushnet Rubber Co. Inc. Acquisition Project. The loan compensated for approximately 70% of the total acquisition costs. The proceeds of the loan would be used by the borrower to wholly acquire Acushnet Rubber Co. Inc., (doing business as Precix since 2011), a New Bedford, Massachusetts-based manufacturer of o-rings and other automobile parts. On or around December 28, 2012, the acquisition of Acushnet Rubber Co. Inc. was completed for approximately $71.25 million USD. After the Acushnet Rubber acquisition, Zhongding possessed five factories in the U.S., including, Michigan Rubber Products Inc., Buckhorn Rubber Products Inc. , and Cooper Products Inc..

Staff comments

1. AidData identified CDB's involvement in this loans in sources that were later taken down and not recoverable, though not before AidData was able to record the information present in them. 2. Zhongding Sealing Parts (USA) is part of the Anhui Zhongding Holding Group of companies, an international engineered rubber parts manufacturer for automotive and heavy industrial industries with 20 facilities across the globe and more than 11,000 employees. 3. The face value of the CDB loan is unknown. However, given that the total cost of the acquisition was $71.25 million and M&A loans often cover at least 70% of the total cost of the acquisition, AidData assumes for the time being that the face value of the CDB loan was roughly equivalent to $49.875 million. This issue warrants further investigation.