CITIC Capital to exit Japanese chemicals manufacturer

Financial details were not disclosed. CITIC acquired the company in late 2012 for an undisclosed sum via its Japan Partners II fund, which closed in 2011 at JPY18.2 billion ($165 million). The investment coincided with civil rehabilitation proceedings for the company after it reportedly amassed liabilities of JPY20.3 billion.

The company, which specializes in polymer material compounding for automotive and consumer electronics clients, implemented a series of operational improvements under CITIC ownership, including reinforcement of management control and improvement of access to global markets. CITIC claimed in a statement that sales and profitability had improved significantly, and that the company is on track for further growth. 

Polymatech is set to be sold to Sekisui Chemical, a company focused on high-performance plastics, and fellow chemicals player Inabata & Co. Both buyers are targeting expanded exposure to the automobile sector.

The sale follows the close earlier this year of CITIC’s third Japan buyout fund at the hard cap of JPY30 billion. The firm closed its first Japan fund at JPY16.9 billion in 2005 and then raised JPY18.2 billion for its second vehicle in 2011. Fund III follows a similar strategy to its predecessors, pursuing buyouts of middle-market Japanese companies with strong China growth prospects.

CITIC Capital manages more than $18.7 billion across private equity, real estate, structured investment and finance, and asset management. The PE arm operates in Japan, China and the US and manages about $4.5 billion in committed capital.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• North Asia
• Industrials
• Exits
• Trade sale
• Japan
• CITIC Capital
• manufacturing