EQT exits Modern Metal to China’s JD Capital
EQT Partners has exited Modern Metal & Precision, a Chinese aluminum die casting manufacturer, to China-based private equity firm JD Capital.
According to a release, EQT Greater China II has sold its 30% interest in Modern Metal to JD, while the founders in the company have sold a 49% stake. Financial terms were not disclosed.
Modern Metal was started in Hong Kong in 1969 and has since built manufacturing facilities in Dongguan and Wuzhou. It provides aluminum die-casting solutions including products and tool design, tooling fabrication, precision computer numerical control (CNC) machining and assembly services. The company serves over 100 global clients in the automotive, climate control, industrial automation and telecom industries.
EQT acquired a 30% stake in the company in December 2010 for an undisclosed sum. The GP has since then strengthened the corporate governance and leveraged its industrial experience to support management in strategic planning, marketing strategies and quality improvement initiatives. The Wuzhou plant was opened during EQT's ownership, with a view to capturing the needs for increased sourcing of aluminum die castings and auto parts from China.
"During the past five years, Modern Metal has added three key global automobile OEM customers, more than doubled its plant capacity and sales, and has become a larger and stronger player," said Martin Mok, a partner at EQT.
Revenue of Modern Metal came to $153 million in 2014, up from $130 million in 2013.
JD Capital, formerly known as Jiuding Capital, was established in 2007 and rose to prominence in the renminbi fund space, primarily as a pre-IPO investor in Chinese companies. The GP closed its second US dollar fund at $200 million in 2014, with commitments from the likes of Temasek Holdings, Allianz Group, Allstate Insurance, and Partners Group.
In 2014, JD became the first Chinese PE firm to list on the country's emerging over-the-counter (OTC) platform - the National Equities Exchange and Quotation (NEEQ). It then completed a backdoor listing of its PE business and now trades on the A-share market in Shanghai. In August last year, the GP agreed to buy Ageas' Hong Kong life insurance business for HK$10.68 billion ($1.38 billion).
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