HQ exits vehicle parts supplier to Japan’s Hitachi Chemical
HQ Equita, a Germany-based mid-market buyout firm controlled by HQ Capital, has agreed the sale of transportation industry supplier Isolite to Japan’s Hitachi Chemical.
Financial details were not disclosed. The transaction will result in Hitachi taking 100% of the company, which produces high-temperature insulation systems for the automotive, aviation and turbo machinery industries. HQ Equita currently holds a 90% stake.
The GP acquired Isolite in 2010 for an undisclosed sum and has developed the company from a small-batch niche market supplier to a large-series manufacturer spanning four continents. Growth measures implemented during the investment period include the introduction of highly automated production technology and the strengthening of differentiated materials competencies. The sales, R&D, design and management teams were also enlarged.
“We are proud to have had the opportunity to support an outstanding management team in taking Isolite to the next level and firmly establishing the company on the international stage by adopting an entrepreneurial and industrial investment approach,” Hans Moock, a managing director of HQ Equita, said in a statement. “With Hitachi Chemical, Isolute has found an ideal partner to continue on its successful growth path in the future.”
Hitachi plans to expand Isolute sales to Japanese automakers through its existing Japanese sales network. At the same time, it will exploit the company’s sales network and manufacturing bases in Europe to accelerate the promotion of Hitachi automotive products.
HQ Equita claims to have invested about EUR1 billion ($1.1 billion) in more than 30 companies since 1992. It focuses primarily on mid-market companies in German industrial sectors.
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