Transaction Price of 12.39 Million Euros, Target Assessed Value Exceeds 32 Million Euros Wanshun New Materials Plans to Acquire Loss-Making European Aluminum Foil Plant at 40% Discount

Daily Economic News Reporter | Wu Zepeng
Daily Economic News Editor | Chen Junjie

Under the pressure of its own performance, Wanshun New Materials (SZ300057, stock price 6.42 yuan, market value 5.764 billion yuan) has announced an overseas acquisition plan, which has recently made new progress.

On March 16, Wanshun New Materials announced that its wholly owned subsidiary plans to acquire 100% equity of Luxembourg aluminum foil producer Eurofoil Luxembourg S.A. (hereinafter referred to as Eurofoil Luxembourg) for 12.3889 million euros in cash. Recently, the relevant audit and valuation work for Eurofoil Luxembourg has been completed, and the company’s board of directors has also approved the acquisition proposal.

The Daily Economic News reporter noted that the transaction price is far below the valuation of the target asset: the valuation report shows that as of September 30, 2025, the net asset valuation of Eurofoil Luxembourg is approximately 32.17 million euros, nearly 20 million euros higher than the transaction price. Based on this, the transaction discount rate is about 60%.

In addition, the reporter also found that both the target company and Wanshun New Materials are currently operating at a loss. Financial data shows that Eurofoil Luxembourg incurred a net loss of nearly 13 million euros in the first nine months of 2025, while Wanshun New Materials expects a net profit attributable to parent company of a loss between 160 million and 190 million yuan in 2025.

The Daily Economic News reporter learned that at the end of last year, Wanshun New Materials proposed a transaction plan to acquire 100% equity of Eurofoil Luxembourg through its wholly owned subsidiary Jiangsu Zhongji Composite Materials (Hong Kong) Co., Ltd. According to the latest announcement, this transaction has been approved by the Luxembourg Ministry of Economy and the company’s board of directors, and is currently awaiting shareholder approval.

Data shows that Eurofoil Luxembourg was established in 1982, mainly engaged in the production and sales of aluminum foil and aluminum sheets, with a complete production line and a good reputation in the European market. It currently has 4 casting lines, 5 rolling lines, 5 finishing lines, and 5 packaging lines, with a designed casting capacity of about 56,000 tons per year and rolling capacity of about 33,000 tons per year.

Additionally, Wanshun New Materials also introduced that Eurofoil Luxembourg is currently focused on high-value-added products in the aluminum foil field and plans to continue this strategy in the coming years. Furthermore, Eurofoil Luxembourg is continuously developing niche products in the thin foil sector, aiming to develop new alloys to expand into new markets such as pharmaceuticals and sealing materials.

From the latest disclosed valuation report, a major highlight of this transaction is its significant discount. According to the report, as of September 30, 2025, the market value of Eurofoil Luxembourg’s net assets is evaluated at 32.17 million euros. This figure increased by 11.15 million euros from its book net assets of 21.02 million euros, with an appreciation rate of 53.04%.

However, compared to the valuation of 32.17 million euros, the agreed transaction price of 12.3889 million euros results in a price difference of 19.78 million euros, representing a discount of about 60%. Wanshun New Materials stated in the announcement that the transaction price was determined on the basis of equality and voluntariness, considering the target company’s operating conditions and asset situation, after negotiations between both parties.

Wanshun New Materials said that as a leading enterprise in the aluminum processing industry, its core long-term focus is on aluminum foil and aluminum sheet and strip businesses. Acquiring Eurofoil Luxembourg is an important step in the company’s global expansion, helping to avoid the impact of international trade protection policies and enhancing brand influence and market share.

The Daily Economic News reporter found that Wanshun New Materials’ total revenue for 2024 was 6.58 billion yuan, with foreign revenue of 1.18 billion yuan, accounting for nearly 18%, similar to 2023. In the first half of 2025, the company’s revenue approached 2.7 billion yuan, with foreign revenue about 525 million yuan, accounting for approximately 19.44%, showing a slight increase.

At an investor communication meeting in February this year, Wanshun New Materials introduced that its aluminum processing business has formed an integrated industry chain of aluminum sheets, strips, and foil. The total capacity planned for aluminum foil is 255,000 tons, distributed in Jiangsu and Anhui, while the current total capacity for aluminum sheets and strips is 260,000 tons, distributed in Jiangsu, Anhui, and Sichuan.

In addition to its global layout, Wanshun New Materials also stated that this acquisition will help fully leverage the resource advantages of both parties, create synergy, and improve core competitiveness and profitability through technological resource integration.

Regarding profitability, despite high expectations for the acquisition, the Daily Economic News reporter noted that both Wanshun New Materials and Eurofoil Luxembourg are currently operating at a loss.

Wanshun New Materials disclosed at the end of January that its 2025 performance forecast expects a net profit attributable to the parent of -190 million to -160 million yuan for last year, with a non-recurring profit loss expanding to 227.5 million to 197.5 million yuan. The company explained that the losses were mainly due to the combined effects of domestic and international aluminum price inversions, low processing fees in the industry, and the cancellation of export tax rebates.

Meanwhile, the financial situation of the target company Eurofoil Luxembourg is also not optimistic. Audits show that in 2024, the company achieved approximately 9.019 billion euros in revenue, with a net loss of about 558,000 euros. In the first nine months of 2025, revenue was about 8.633 billion euros, with net losses expanding to approximately 12.96 million euros.

Cover image source: Meiri Media Library