Proposed majority stake in Regent-Feinbau aims to strengthen OEM exposure and unlock growth in China and Europe
Highway Holdings Limited (HIHO) announced it has signed a non-binding letter of intent to acquire a 51% stake in Germany-based Regent-Feinbau Adermann GmbH, marking a significant step in the company’s strategy to expand its OEM-focused manufacturing capabilities. The transaction, which is expected to close by the end of March 2026, would be funded primarily with cash and a smaller portion of Highway Holdings’ unregistered shares, subject to due diligence and customary closing conditions.
Founded in 1949, Regent-Feinbau is a certified precision manufacturing specialist serving the automotive, commercial vehicle, aerospace, and industrial markets. The company holds multiple quality certifications, including IATF 16949, ISO 9001, and ISO 14001, and offers vertically integrated production capabilities ranging from laser cutting and forming to advanced welding and full component assembly. Its customer base includes OEMs and Tier 1 suppliers, with experience supporting high-performance automotive programs.
Highway Holdings Limited Chairman, President, and CEO Roland Kohl said the proposed acquisition aligns with the company’s short- and long-term goal of reinvigorating its OEM business, which has faced revenue pressure following global disruptions during and after COVID. He highlighted Regent-Feinbau’s Tier 1 supplier experience—serving customers such as AMG Mercedes-Benz—as particularly valuable for Highway Holdings’ Chinese metal components division, Nissin Shenzhen.
China represents a central pillar of the strategy. According to Kohl, the Chinese automotive market remains one of the few major regions still posting positive growth, currently estimated at $660 billion with projected growth of more than 2% annually over the next five years. Sheet metal components account for roughly 8% to 12% of a vehicle’s value, translating into a market of approximately $50 billion per year. Regent-Feinbau’s thick sheet metal cutting, bending, and welding capabilities would enable Highway Holdings to pursue opportunities it previously could not address.
Beyond China, the company expects Regent-Feinbau’s European operations to benefit from Highway Holdings’ scale, operational expertise, and financial backing. These synergies could allow the German manufacturer to target higher-volume programs that were previously out of reach.
Kohl emphasized that Regent-Feinbau represents only the first step in a broader M&A strategy focused on Germany, with additional targets already under evaluation. Highway Holdings believes it is well positioned to execute this strategy, citing a strong balance sheet with minimal debt and approximately $5.3 million in cash and equivalents, or about $1.20 per share.
You might like this article:ServiceNow Makes $7.75 Billion Bet on Cybersecurity With Armis Acquisition
