GUANGZHOU, China, May 16, 2026 — ARC Group, the global investment bank and management consultancy with offices spanning 12 countries and 3 continents, brought together more than 60 employees from across Asia, the Middle East, Europe, and North America in Guangzhou, China from May 13 to 15 for its 2026 annual global retreat.

The three-day program combined leadership sessions, AI training, experiential team-building, and business training focused on cross-border M&A and capital markets execution. Many participants met in person for the first time despite having worked together across time zones for months or years.

The Firms That Win Are Built on Principle

Senior leadership worked directly alongside global teams on live market challenges, including cross-border deal execution, risk assessment across regions, and decision-making under pressure. President Sergio Camarero led sessions centered on ARC Group’s foundational principles, with particular focus on the firm’s Ten Golden Rules. One principle emerged as a recurring theme across the week: “If there is a will, there is a way.”

The Tools That Change How We Work

An AI training workshop moved immediately from concept to application. Teams ran a live deal screening exercise using AI tools, processing in minutes a pipeline that would typically require hours of manual review. Within the same timeframe, teams were able to evaluate up to three times more opportunities, prompting discussion across offices on how AI is already reshaping workflows and elevating the quality of decision-making at ARC Group.

The Best Teams Are Built Under Pressure

A dragon boat session at Baiyun Lake began with the traditional eye-dotting ceremony before moving into synchronized training and competitive racing. In the opening practice run, timing was off and the boat struggled to find momentum. It was only when one teammate began counting each stroke aloud that the entire crew synchronized and accelerated as one unit. By the final race, teams that had struggled in practice were moving in clean, coordinated form across the water.

A paintball challenge followed, testing strategy, communication, and adaptability under pressure. One team that opened aggressively lost positioning early, paused to reassign roles and restructure their approach, and recovered to finish with discipline and coordination. Both activities reinforced a consistent theme across the retreat: execution is a collective discipline, not an individual one.

Execution Defines the Outcome

A live simulation put teams inside a real transaction: a Southeast Asian company evaluating an IPO and an acquisition simultaneously. The exercise demanded real-time decisions on capital structure, deal timing, and execution sequencing, with no single right answer and no room to defer.

Teams across offices worked through the same problem together, surfacing the friction that defines real transactions. Where one region prioritized speed to market, another flagged integration risk. Where one team pushed for optionality, another argued for focus. The disagreements became the focus of discussion.

In a live transaction, outcomes are determined long before closing, by how fast a team moves from misalignment to a unified position and executes from that point onward.

One Team, Every Market, What Comes Next

Reflection sessions extended naturally beyond the scheduled program into informal conversations over meals and during departures. What emerged across three days of structured and unstructured exchange was a shared operating rhythm built through direct experience rather than instruction.

 “At ARC, culture is demonstrated through action, especially under pressure, not simply documented. This week, I witnessed teams from 12 countries come together, align quickly, and perform both on the water and in the room. In today’s market, the strongest teams are not necessarily those with the greatest resources, but those that align with purpose and execute with discipline. Guangzhou reaffirmed that ARC has that capability, and that is our competitive edge.”

— Sergio Camarero, President, ARC Group

As employees returned to their respective markets, the retreat marked another step in ARC Group’s ongoing commitment to building a global team capable of operating with speed, alignment, and precision across every market it serves.

About ARC Group

Established in 2015, ARC Group is a global investment bank, asset manager, and management consultancy deeply rooted in Asia with a global reach. Operating across 12 countries and 3 continents, ARC Group specializes in cross-border financial advisory, M&A, IPOs, SPAC transactions, financing, and management consulting. ARC Group wholly owns ARC Group Securities LLC, a U.S.-registered, FINRA-member broker-dealer.

The post ARC Group Convenes Global Team in Guangzhou for 2026 Annual Retreat first appeared on ARC Group.

On April 10, 2026, Ruoyuchen announced that, through its wholly owned offshore subsidiary Ruoyuchen International Limited, it agreed to acquire 100% equity interests in certain holding entities and their subsidiaries under Bespoke Global LP for a total consideration of approximately US$43.82 million (c. RMB 299 million). The transaction gives Ruoyuchen indirect ownership of the global brand assets and operating system of Erno Laszlo.

Upon completion, the target will be consolidated into Ruoyuchen’s financials, with the brand, IP, and global distribution network fully integrated into its international business segment.

Structurally, the deal is executed through offshore vehicles. The acquired assets primarily include brand trademarks, core formulations, R&D capabilities, and a distribution network covering North America and markets outside Mainland China. The U.S. holding platform serves as the global operating entity for the brand, without direct manufacturing functions; instead, underlying operating entities handle market execution and brand management across regions. This “holding platform + regional execution” model is typical in cross-border consumer brand M&A.

From an operating perspective, Erno Laszlo is not a high-growth asset. Public disclosures indicate revenue of approximately US$82.64 million in 2024, declining year-on-year, followed by a further drop to around US$59.96 million in 2025. The business remains loss-making, albeit with narrowing losses. Overall, the target exhibits a familiar profile: strong brand recognition but weak growth momentum.

In terms of valuation, the transaction implies a meaningful premium. Pricing is not anchored in current profitability, but rather in brand heritage, global awareness, and reactivation potential. As such, the deal is closer to an acquisition of brand equity as an asset than a traditional earnings-driven expansion.

II. From Case to Trend: Beauty M&A Is Entering an “Asset Repricing Cycle”

1. From “Growth Logic” to “Asset Logic”

If transactions such as Ruoyuchen’s acquisition of Erno Laszlo are viewed in a broader industry context, it becomes clear that this is not an isolated commercial decision, but rather a reflection of a new phase in the global beauty M&A cycle.

According to long-term tracking by institutions including GCI Beauty, the M&A logic in the beauty sector has undergone a noticeable shift over the past five years. Broadly, it can be divided into two phases: an earlier “brand expansion cycle” centered on growth, and a current “structural reorganization cycle” focused on asset repricing and portfolio optimization. The underlying deal logic is shifting from “who can grow” to “which assets are worth regrowing.”

Around 2020, capital markets were primarily focused on GMV growth, channel expansion capabilities, and market share gains, and transactions were largely driven by the pursuit of rapid growth. However, since 2022, changes in the macro environment, consumer segmentation, and traffic costs have significantly weakened this paradigm. Growth has become more uncertain, and the predictability of single-brand performance has declined. Buyers have accordingly shifted from “buying growth” to “buying certainty,” and further toward “buying reactivatable assets.”

Against this backdrop, buyer focus has materially shifted. Rather than prioritizing short-term growth alone, greater emphasis is now placed on whether a brand possesses the foundational characteristics of an asset that can be reactivated. In other words, deal logic is evolving from “buying growth” to “buying assets,” and further toward “buying reconstructible assets.”

2. Why “Heritage Brands” Are Regaining Importance

The most direct manifestation of this shift lies in how buyers screen targets. Previously, growth rate and channel performance were the primary criteria; today, greater weight is placed on whether a brand has “replasticity”—that is, whether it can re-enter a growth trajectory after being repositioned and reoperated. In skincare and premium personal care in particular, “brand heritage,” once considered a relatively soft factor, is being repriced.

The underlying logic is straightforward. In the beauty industry, technological barriers at the product level are relatively limited—ingredients, formulations, and even manufacturing processes are highly replicable. What is genuinely difficult to replicate is long-term accumulated trust. A brand with decades or even a century of history, even if currently experiencing stalled growth, still occupies a stable cognitive anchor in consumers’ minds. In an algorithm-driven content era, such anchors become even more valuable: traffic may fluctuate, but established perception tends to persist.

At the same time, changes in traffic structure are reinforcing this trend. As platforms such as TikTok, Instagram, and Xiaohongshu have become core distribution channels, customer acquisition in beauty has shifted from a “channel-driven” model to a “content-driven” one. A key challenge of this model is increased uncertainty—shorter hit-product cycles, greater volatility in conversion, and continuously rising CAC—making it significantly riskier to build a brand from scratch.

In this environment, a brand that has already been validated by the market, even if currently experiencing stagnant growth, carries stronger transactional appeal. This is because what buyers are fundamentally acquiring is not current scale, but a proven starting point that has already demonstrated consumer acceptance.

3. Structural Advantage of Chinese Buyers: From Execution Capability to “Regrowth Capability”

If heritage brands provide the asset foundation, Chinese buyers contribute another critical capability: regrowth.

This capability is not derived solely from capital, but from a combination of systemic operational strengths. On one hand, Chinese companies possess highly efficient digital conversion capabilities, enabling rapid scaling through e-commerce and content platforms, supported by sophisticated social media marketing systems that can quickly reconstruct brand narratives. On the other hand, highly flexible supply chain systems allow for significantly faster product and cost optimization compared to traditional Western brand structures.

When these structural capabilities are combined, a clear transaction logic emerges: European or U.S. brands provide “heritage and trust stock,” while Chinese companies contribute “growth and amplification capability,” with M&A serving as the structural bridge between the two.

As a result, the essence of such transactions is no longer traditional “M&A integration,” but rather closer to a process of “asset redevelopment.” What buyers acquire is not a static brand, but a brand system that can be reactivated through operational capabilities.

4. A Structural Window: Why Cross-Border Beauty M&A Is Accelerating

Within this framework, it is important to note that the current wave of beauty M&A activity is not coincidental but is supported by a relatively clear structural window.

On the supply side, a large number of mid-sized beauty brands across Europe and Southeast Asia are simultaneously facing slowing growth and increasing exit pressure. On one hand, the DTC model, after exhausting its early-stage tailwinds, is entering a bottleneck phase, making it increasingly difficult for independent brands to sustain growth through a single digital channel. On the other hand, private equity funds that entered the consumer sector in earlier cycles are now collectively approaching exit phases. This is further compounded by generational succession challenges faced by some family-owned businesses, leading to a clear increase in willingness to sell at the brand level.

At the same time, from a valuation perspective, the consumer sector has undergone a broad correction following the elevated valuation levels of 2020–2021, with pricing of high-quality brand assets returning to more rational ranges. The combination of increased supply and valuation reset has brought to market a cohort of brands with strong heritage but stalled growth, often at tradable and in some cases temporarily discounted valuations.

In other words, the market is entering a classic “brand asset repricing cycle.”

III. From Deal Paths to Industry Divergence: Three Structural Directions

At its core, the deal aims to combine China’s leading digital retail capabilities with Europe’s mature offline retail network, creating a cross-regional consumer electronics retail ecosystem.

1. Capability-Driven Brand Acquisitions

Acquiring heritage or professionally endorsed brands to upgrade brand positioning and pricing power—typically seen in transitions from mid-market to premium.

2. Cross-Category Expansion

Entering adjacent categories (e.g., fragrance, body care) to diversify beyond skincare and build broader consumption scenarios.

3. Multi-Brand Portfolio Strategy

Shifting from single-brand growth to portfolio management, enabling synergies across price tiers, geographies, and lifecycle stages—structurally resembling global beauty conglomerates.

IV. Back to First Principles: From “Product Export” to “Brand Asset Globalization”

Against this backdrop, returning to Ruoyuchen’s acquisition of Erno Laszlo, the significance of the transaction extends well beyond the deal itself. What it reflects is not merely increased cross-border M&A activity, but a fundamental shift in the role of Chinese beauty companies within the global value chain: from the earlier “Globalization 1.0” phase – centered on product manufacturing and channel export – toward a “Globalization 2.0” phase, defined by the acquisition of brand assets and the export of reoperation capabilities.

In this phase, brands are no longer just operating units; they are increasingly treated as assets that can be acquired, reshaped, and reactivated into new growth cycles. M&A, in turn, becomes the key mechanism linking accumulated brand heritage with renewed growth capability.

V. ARC’s Perspective

With deep, long-term engagement in cross-border M&A across consumer and beauty sectors, our team leverages a global network and extensive transaction experience.

We are actively sourcing and have curated a pipeline of high-quality beauty and personal care assets across Europe and other mature markets – many with clear positioning, established distribution, and meaningful upside potential.

For companies seeking to enter global markets via M&A, build multi-brand portfolios, or accelerate international expansion, we welcome further discussions at both strategic and transaction levels to explore long-term value creation pathways in cross-border brand assets.

Author:

Guillaume de La Hosseraye

Partner

guillaume.delahosseraye@arc-group.com

 

The post Beauty Globalization 2.0: From Ruoyuchen’s Acquisition of Erno Laszlo to see the Next Phase of China’s Beauty Expansion first appeared on ARC Group.

Now in its fourth consecutive year in Kuala Lumpur, the forum has further solidified its position as one of Southeast Asia’s premier platforms for strategic dialogue on capital markets, mergers and acquisitions, and cross-border financial expansion.

Defining the Next Phase of Cross-Border Capital Formation

The 2026 edition convened influential decision-makers across the financial ecosystem to examine the structural shifts shaping global capital markets, including evolving investor sentiment, cross-border M&A execution, IPO preparedness, and Southeast Asia’s expanding role in global capital deployment.

Entrepreneurship, strategic financing, and international expansion featured prominently throughout the forum, reflecting how growth companies are increasingly aligning capital strategy with broader global expansion ambitions.

Malaysia emerged as a central focus within these discussions, as regional growth companies reassess capital access strategies and increasingly look beyond domestic markets toward international financing and public market opportunities.

From Market Insights to Execution Strategies

A series of keynote sessions delivered focused perspectives on today’s rapidly evolving capital markets landscape.

Datuk Seri Paul Chong, Partner at ARC Group, opened the forum with a keynote on shifting IPO dynamics, highlighting structural challenges within the micro-cap segment and emphasizing the need for stronger investor alignment.

Drew Bernstein, Co-Chairman of MarcumAsia, emphasized that governance, transparency, and execution discipline have become increasingly critical to IPO and De-SPAC success in a more selective global market environment.

Ian Hanna, CEO of ARC Group Securities, underscored the growing importance of integrated cross-border capital markets capabilities and institutional-grade execution readiness across advisory and underwriting platforms.

A dedicated panel on capital access further explored how Malaysian growth companies are rethinking financing strategies, reflecting broader regional momentum toward cross-border capital solutions and international market participation.

Panel participants included:

• Joy Pan, Senior Partner at MarcumAsia
• Pramugh Pathmanaban, Head of Equity Markets Development, Securities Market at Bursa Malaysia Berhad
• Roger Salazar, Jr., Managing Director and Head of Global Capital Markets at ARC Group Securities
• Sally Yin, Partner at HTFL
• Shu Haur, Principal at Ares Credit Group

Moderated by Ian Hanna, the discussion reinforced a central conclusion: as global markets evolve, companies are increasingly shifting from opportunity-driven strategies toward execution-driven outcomes.

Nasdaq Keynote Highlights International Market Access

A major highlight of this year’s forum was the keynote address delivered by Hiren Krishnani, Senior Director at Nasdaq, who oversees capital markets initiatives across the ASEAN region.

Krishnani shared strategic insights on global listing pathways, IPO readiness, and positioning Southeast Asian companies for successful participation in international public markets.

“Southeast Asia continues to play an increasingly important role in global capital markets. Companies that are strategically prepared and globally aligned are best positioned to access international liquidity and long-term growth opportunities.”

ASIA Records Recognition Validates ARC Group’s Global Advisory Reach

During the forum, ARC Group was formally recognized by ASIA Records with the title:

“Most Nationally Diverse Client Base for NASDAQ Special Purpose Acquisition Company (SPAC) Listings by an Investment Bank.”

The recognition reflects ARC Group’s advisory leadership across 54 NASDAQ SPAC transactions as of 2026, representing sponsor clients from 17 countries spanning Asia, North America, Europe, Latin America, and Africa.

This achievement underscores ARC Group’s demonstrated ability to support one of the most geographically diversified issuer bases in the industry while executing complex cross-border capital markets transactions at scale.

Institutional Support Across Financial Ecosystems

The forum was supported by leading organizations across securities, legal, accounting, and advisory sectors, reflecting a broad institutional commitment to advancing regional capital formation and strengthening Southeast Asia’s connectivity with international financial markets.

Financial Leadership Aligned with Social Impact

As part of the 2026 forum, ARC Group partnered with Feed My Starving Children to support initiatives addressing global child hunger and food insecurity.

This initiative reflects ARC Group’s broader philosophy that financial leadership and global expansion should be accompanied by meaningful social responsibility.

Executive Commentary

“This year’s forum reflects Southeast Asia’s growing strategic importance within global capital formation. The scale of participation, institutional engagement, and quality of dialogue underscore the region’s expanding influence as an increasingly critical center for international capital deployment.”

— Carlos Lopez, Executive Director, ARC Group

Looking Ahead

With record attendance, expanded international participation, and increasing institutional relevance, the 2026 Kuala Lumpur edition marked ARC Group’s most significant regional forum to date.

ARC Group remains committed to advancing strategic dialogue, facilitating international market access, and positioning Southeast Asia at the forefront of the next generation of global capital markets development through future editions of its Capital Markets & M&A Forum series.

The post ARC Group Hosts Capital Markets and M&A Forum 2026 in Kuala Lumpur, Reinforcing Southeast Asia’s Strategic Role in Global Capital Markets first appeared on ARC Group.

The discussion highlighted a growing trend of Malaysian companies increasingly exploring international capital markets, particularly in U.S. capital markets, as businesses seek broader investor access, stronger liquidity, and more competitive valuation environments.

According to ARC Group Partner Datuk Seri Paul Chong, the tightening of private market financing is no longer a temporary market cycle, but part of a broader structural shift affecting how companies approach growth and fundraising.

“Private equity and venture capital investors are becoming increasingly selective, with capital concentrating around a smaller number of sectors and opportunities,” he said.

“As a result, companies can no longer wait until the last minute to think about capital markets. Decisions around fundraising strategy and listing pathways now need to happen much earlier.”

A key focus of the session was the increasing appeal of U.S. exchanges such as Nasdaq and the New York Stock Exchange for Malaysian mid-market companies.

“Access to global investors, deeper liquidity, and stronger valuation benchmarks are among the key drivers behind this shift,” Chong added.

“It’s no longer just about raising capital locally, companies are thinking globally from day one.”

ARC Group also noted that valuation gaps between U.S. and Asian markets continue to influence listing strategies, with many APAC companies exploring overseas markets to access broader institutional investor participation and increased market visibility.

From an execution perspective, ARC Group Securities CEO Ian Hanna emphasized that companies are becoming more strategic in how they approach international listings and capital raising.

“In today’s environment, companies are not delaying , they are becoming more deliberate and strategic,” he said.

“Execution, structuring, and access to the right investor base have become increasingly important, particularly for companies evaluating cross-border opportunities.”

Hanna also highlighted that international exchanges offer flexibility for growth-stage companies that may not yet meet profitability thresholds required in certain domestic markets.

From an investor standpoint, ARC Group Head of Asset & Wealth Management Nigel Wong noted that Southeast Asia is increasingly attracting global investor attention, supported by long-term structural growth, resilient foreign direct investment flows, and ongoing regional economic expansion.

“With investors actively seeking growth opportunities beyond traditional markets, Southeast Asia is emerging as an increasingly important pipeline for global capital allocation,” Wong said.

He added that ARC Group is seeing growing interest from international investors and family offices looking for exposure to ASEAN-focused opportunities, particularly in sectors such as digital infrastructure, advanced manufacturing, and clean energy.

The discussion also touched on Malaysia’s domestic financing landscape, where funding gaps for small and mid-sized enterprises continue to reinforce the importance of alternative capital market solutions and international financing access.

The media luncheon formed part of ARC Group’s broader engagement surrounding the Capital Markets and M&A Forum 2026 Malaysia Edition, which marked the fourth consecutive year of the firm hosting the event in Kuala Lumpur.

The forum has grown into one of the largest capital markets gatherings globally, attracting over 500 senior executives and market participants. This includes a strong domestic presence with close to 400 delegates from Malaysia, alongside a significant international contingent from more than 16 countries, including the United States, United Kingdom, China, India, New Zealand, Australia, South Africa and Uganda.

It continues to serve as a key platform for dialogue on global capital markets, cross-border M&A, and international growth strategies, reflecting ARC Group’s ongoing commitment to strengthening capital markets connectivity between Southeast Asia and global investors.

Media coverage:

The media session has garnered coverage across leading Malaysian outlets, including The Star, with additional interest from broadcast and financial media such as New Straits Times Press, Astro Awani, and Radio Televisyen Malaysia.

This broad coverage across print, digital, and broadcast platforms reflects strong media engagement and reinforces ARC Group’s key narratives on Malaysia’s evolving role in global capital markets and cross-border capital flows.

The Star :  ARC Group sees a growing push for Malaysian firms to list overseas

Astro Awani : Malaysia emerges as a two-way capital market

NSTP : Nasdaq draws Malaysian firms eyeing global capital

RTM Online (Malay) : Pasaran modal global alternatif pembiayaan

RTM Video (Malay)

RTM Video (English)

The post Malaysian Companies Increasingly Looking Beyond Domestic Markets for Growth and Capital Access, Says ARC Group first appeared on ARC Group.

Magnax, a Kortrijk-based company specialising in yokeless axial flux electric motor technology, secured the €35.5 million through a two-stage capital increase that has received foreign direct investment (FDI) approval. Upon completion, Pan-International — a Taiwan-based manufacturer of wiring harnesses, printed circuit boards and precision electronic components, and a member of the Foxconn Group — will become Magnax’s largest shareholder.

Founded in 2015 by Peter Leijnen, Daan Moreels and Kester Goh, Magnax develops yokeless axial flux electric motors for high-performance industrial applications and next-generation electrification platforms. Its patented technology delivers substantially higher power density than conventional radial flux motors, enabling lighter, more compact and more efficient powertrain solutions across electric vehicles, industrial drives, robotics, machine automation and aerospace propulsion. The company commercialises its technology through two dedicated spin-offs: Traxial in ground e-mobility and Axyal in aerospace propulsion.

The new capital will be deployed to industrialise Magnax’s axial flux motor portfolio and scale high-volume production. The company’s headquarters and R&D will remain in Belgium, while high-volume manufacturing will be established in China, leveraging the Foxconn Group’s supply chain and production infrastructure. Magnax’s incoming management team is co-investing alongside Pan-International and Foxconn Group, underscoring long-term alignment with the company’s industrialisation strategy.

“We are delighted to have advised Magnax and its founders on this transformative transaction. Pairing European deep-tech leadership with Asian industrial scale is precisely the type of cross-border partnership ARC Group was built to enable, and we look forward to supporting Magnax as it scales globally”

— Valentin Ischer, Partner, ARC Group

Established in 2015, ARC Group is a global investment bank deeply rooted in Asia with a global reach, specialising in bridging Asia with the rest of the world. The Magnax transaction exemplifies ARC Group’s core competency of connecting European innovation with Asian strategic capital and manufacturing scale.

Full announcement: arc-group.com/magnax-secures-e35-5-million-from-pan-international-industrial-corp-and-foxconn-group-to-industrialise-axial-flux-motor-technology

For more information or any questions, please contact:

Valentin Ischer
Partner
valentin.ischer@arc-group.com

The post ARC Group Advises Magnax on €35.5 Million Strategic Investment from Pan-International Industrial Corp. and Foxconn Group first appeared on ARC Group.

Magnax’s Technology – Founded in 2015 by Peter Leijnen, Daan Moreels and Kester Goh, Magnax develops yokeless axial flux electric motors for high-performance industrial applications and next-generation electrification platforms. The technology can be utilised in electric vehicles, industrial drives, machinery automation, robotics and aerospace applications. Magnax valorises and commercialises its patented yokeless axial flux technology via separate spin-off companies: Traxial, focused on ground e-mobility applications, and Axyal, focused on aerospace propulsion systems. The company states that axial flux technology offers numerous advantages over traditional radial flux electric PM motors, providing substantially higher power density, allowing for greater range, lighter motors and more compact sizes, and opening up a wider range of flexible options for powertrain design. Magnax highlights that its yokeless axial flux motor technology uses a pancake-shaped, space-efficient design topology, allowing e-mobility innovators to develop and launch more compact and efficient powertrain solutions. The architecture is especially suitable for direct-drive or geared industrial drives, robotics and machine automation, and high-efficiency electrification applications such as e-mobility.

Peter Leijnen, Co-Founder of Magnax, commented: “Axial flux motors have a fundamentally better value proposition in several high-performance use cases. Their high torque density and efficiency enable customers to reduce weight and size of their end products. Lower material usage and higher efficiency translate directly into lower system cost and reduced carbon emissions.”

Kester Goh, Co-Founder of Magnax, added: “The capital will primarily be used to industrialise Magnax’s axial flux motor portfolio and support high-volume production. This partnership bridges European motor innovation with Asia’s largest advanced manufacturing ecosystem.”

Daan Moreels, Co-Founder of Magnax, noted: “This is a new and important phase for Magnax. With Foxconn’s manufacturing scale and industrial ecosystem, Magnax gains the operational foundation required to deploy axial flux motor technology across global markets. The partnership accelerates the company’s transition from engineering innovation to large-scale industrial deployment.”

For Pan-International and the wider Foxconn Group, the investment enhances expansion into advanced electrification technologies that support AI infrastructure (such as data centre thermal management), robotics systems, electric vehicles, high-efficiency industrial drives and machine automation.

Key Transaction Terms and Structure

• Investment Size: €35.5 million, subscribed by Pan-International Industrial Corp., together with Foxconn Group and incoming management members, through a two-stage capital increase.
• Shareholding: Upon completion, Pan-International will become Magnax’s largest shareholder.
• Regulatory Status: The transaction has received foreign direct investment (FDI) approval.
• Operational Footprint: Magnax’s headquarters and R&D will remain in Belgium, while high-volume production will be deployed in China, using Foxconn Group’s supply chain, production infrastructure and customer access.
• Leadership: As part of the transaction, Magnax appointed a new CEO from China with extensive international experience at a global industrial technology conglomerate, including considerable time working in Europe. The new management team is co-investing in the deal.

Advisors – ARC Group Limited acted as exclusive financial advisor to Magnax.

About Magnax

Magnax is a Kortrijk-based deep-tech company founded in 2015 by Peter Leijnen, Daan Moreels and Kester Goh, specialising in yokeless axial flux electric motor technology for high-performance industrial applications and next-generation electrification platforms. The technology can be utilised in electric vehicles, industrial drives, machinery automation, robotics and aerospace applications. Magnax has a team of 30 people in Belgium and has previously raised €16 million in 2020 and €13 million in 2022. The company commercialises its patented technology via separate spin-off companies: Traxial, focused on ground e-mobility applications, and Axyal, focused on aerospace propulsion systems.

About Pan-International Industrial Corp.

Pan-International Industrial Corp. is a Taiwan-based manufacturer of wiring harnesses, printed circuit boards and precision electronic components, and a member of the Foxconn Group. The company is expanding into advanced electrification and automation technologies serving AI infrastructure, robotics, and electric mobility markets.

About Foxconn Group

Foxconn Group (Hon Hai Technology Group) is a Taiwan-headquartered global leader in electronics manufacturing services, with operations spanning consumer electronics, cloud and networking infrastructure, electric vehicles, industrial automation and advanced electrification technologies.

For additional information on the transaction, please see:

• Pan-International Industrial Corp. corporate disclosure: www.panintl.com
• EU-Startups coverage: Belgium’s Magnax secures €35.5 million with Foxconn backing to industrialise axial flux motor technology

For more information or any questions, please contact:

Valentin Ischer
Partner
valentin.ischer@arc-group.com

The post Magnax Secures €35.5 Million from Pan-International Industrial Corp. and Foxconn Group to Industrialise Axial Flux Motor Technology first appeared on ARC Group.