CITIC Capital exits Tri-Wall to Japan's Rengo

CITIC acquired a 67.1% interest in Tri-Wall in 2010, reportedly paying around $65.5 million. The investment was made through CITIC Capital Partners Japan II, although CITIC's international fund, which supports companies looking to accelerate expansion in Asia and China in particular, appears to have backed Tri-Wall as well.

The Tri-Wall brand dates back to the 1950s in the US. It entered other markets through local partnerships, setting up in Japan in 1974 and from there expanding into South Korea, Taiwan, China and Southeast Asia. The Asia entity, which manufactures triple-wall and double-wall corrugated packaging solutions, moved its headquarters from Tokyo to Hong Kong in 2010.

CITIC said in a statement that it has helped Tri-Wall expand its global presence and service offering through continued expansion in China and other Asian regions as well as opening up new markets including Europe, India and the Middle East. Initiatives included the bolt-on acquisition of the Tri-Wall business in the UK and Europe from British packaging firm D.S. Smith in 2013.

Headquartered in Osaka and listed on the Tokyo Stock Exchange, Rengo produces various flexible and heavy duty packaging. It is looking to expand and enhance profitability, including through domestic and overseas M&A.

This is the fifth exit for CITIC's series of Japan funds and the seventh for the international funds. The international team has since been combined with CITIC's China team and the firm is targeting $1.5 billion for a China-focused fund that will target cross-border deals as well.

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• Topics
• North Asia
• Trade sale
• Industrials
• CITIC Capital Partners
• Japan
• Exit
• manufacturing