FD — Johnson: Innovation in China’s Security Vehicle Business

In China’s CIT (cash-in-transit) vehicle industry, armed CIT vehicles dominated the market because of policy barriers and low safety awareness of customers. However, Dr. Wang Yan, CEO of Four Dimensions Industry Company (FDIC), seized a new market opportunity — non-armed CIT vehicles. By cooperating with a leading CIT vehicle manufacturer, Johnson Security Ltd. (Johnson), he established the FD-Johnson joint venture and achieved great success in the non-armed CIT vehicle market segment. However, a cash flow crisis suffered by Johnson raised concerns for the joint venture, which might lose its technological support if Johnson should go bankrupt or be acquired. Dr. Wang started to consider the possibility of acquiring Johnson. Could his company survive without Johnson? Or could Johnson eventually survive after the acquisition?