Chinese manufacturer buys PE-owned Thermal Dynamics
China Zhejiang Yinlun Machinery, a Shenzhen-listed manufacturer of heat exchangers, has acquired US-based counterpart Thermal Dynamics International (TDL) for $56.65 million, facilitating a full exit to US private equity backer Evergreen Pacific Partners.
According to a filing, Zhejiang Yinlun has completed the acquisition of TDL alongside SAIC Capital, a corporate VC arm of Shanghai-listed automobile manufacturer SAIC Motor.
Founded in 1957, Thermal Dynamics manufactures a full range of water- and air-cooled heat exchangers, aluminum radiators and charge air coolers, supplying the automotive, truck and motorcycles industries. The company has its headquarters and a manufacturing facility in Ontario, California, as well as three joint-venture production facilities in China. Evergreen Pacific Partners acquired Thermal Dynamics in 2012.
Founded in 1958, Yinlun is the largest heat exchanger supplier in China. It produces a range of cooling products that can be used in automobiles, agricultural machinery, and ships. Its main facility is in China, with smaller operations in Germany, UK and the US. Yinlun generated RMB2.7 billion in revenue last year, up from $2.4 billion in 2014, while its net profit increased from RMB138 million to RMB186 million.
Xiaomin Xu, Zhejian Yinlun's chairman, said the acquisition of TDL will help expand Yinlun's product offerings and strengthen its customer relationships with leading US players such as Caterpillar, Cummins Engine, Ford, and John Deere.
"This acquisition also will allow us to build off of Thermal Dynamics' diverse automotive, heavy-truck and off-highway customer base," he said in a statement. "In addition, the company also serves industries new to Yinlun such as high-performance and small-engine manufacturers."
Based in Seattle, Evergreen Pacific Partners currently manages two funds totaling $700 million. The firm invests in traditional, middle-market companies in the US.
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