Actis exits hotpot chain Xiabu Xiabu to General Atlantic
Actis has exited Chinese hotpot chain Xiabu Xiabu to General Atlantic after an investment period of four years.
The Chinese restaurant chain gives a modern twist to traditional hotpot, offering customers an individual pot and a selection of ingredients instead of a central communal pot.
Actis purchased its majority stake in Xiabu for $51 million in 2008. It noted that the firm's buffet approach meant it didn't need to employ any chefs and could use a centralized kitchen, making plans to grow threefold a slightly easier endeavor.
At the time of investment, Xiabu had 60 restaurants in Beijing and Tianjin. It is now the largest individual bar-style hotpot chain in China with more than 300 restaurants nationwide, including Beijing, Shanghai, Tianjin, Hebei, Jiangsu and Liaoning. Xiabu currently has a total workforce of 10,000.
"Xiabu Xiabu is a very successful investment for Actis in China. In the past few years, we have witnessed the exuberant growth of the company," said Paul Fletcher, senior partnerof Actis."We are proud of being Xiabu Xiabu's partner in the first round of investment, and we have huge confidence in the company's future development."
The transaction comes after Actis also announced an investment in Chinese casual dining chain Bellagio in September. The company - renowned for its Taiwanese-style dishes and shaved ice desserts - has 35 restaurants across various Chinese cities, as well as in Macau and the Philippines.
China's dining sector is catching attention from private equity and venture capital investors. In November, LionRock Capital led an $11.5 million Series C funding round for YPX Cayman Holdings, which operates the Cloud 9 casual dining chain in China. Existing investors Qiming Venture Partners and Ignition Capital also participated.
In February, Unitas Capital also invested $40 million in Chinese restaurant chain Babela's Group, best known for operating an Italian-themed casual dining chain that has over 120 outlets in Shanghai and Beijing, as well as in tier-two and tier-three cities. The company also owns Cantonese restaurant chain Bamboo Bifengteng and Taiwanese dessert chain Aha!.
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