Cathay backs China food ingredients maker

The investment was made from Cathay's Sino French (Midcap) Fund, according to a release. The goal of the partnership will be to diversify the company's product portfolio, increase its market coverage and create downstream applications.

In addition, Cathay Capital President Mingpo Cai said: "Cathay Capital will leverage its strategic resources in the food and nutrition sector in European and American markets to identify suitable acquisition targets and actively introduce quality customer resources for Cabio."

Cabio produces a variety of food ingredients at its biological fermentation plants in Wuhan. It is a leading producer of arachidonic acid, which is in particular demand from makers of baby formula.

The Sino-French (Midcap) is designed to partner with companies in the midcap segment in France, China or Europe to help them with plans for cross-border expansion. It closed last year at the hard cap of EUR500 million ($624 million). Cathay's previous Sino French Fund raised EUR150 million in 2012.

After closing the fund last year, the firm led a consortium of investors that paid EUR52.5 million for a 49% stake in French diagnostic device maker Echosens, with an additional EUR30 million to support the company's liver disease research. Cathay contributed EUR40 million to the deal.

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• Topics
• Greater China
• Industrials
• Expansion
• Venture
• Europe
• China
• Cathay Capital Private Equity
• Growth capital
• Europe