Chinese GP to buy Camtek's printed circuit board business

Camtek said in a filing that Principle would pay $32 million upon closing – expected in the third quarter of 2017 – with a further $3 million conditional on the unit’s future business performance. The PCB division will retain its current organizational structure, including the R&D operations, which are based in Israel and staffed by local personnel.

Camtek provides solutions intended to enhance production processes and improve product yield and reliability across semiconductors, PCBs and integrated circuit (IC) substrates. Its technologies focus on intelligent imaging, image processing, sample preparation and digital material deposition.

The company has sold more than 2,800 automated optical inspection (AOI) systems to leading PCB and semiconductor manufacturers in 34 countries. It is headquartered in Israel and Hong Kong, and has subsidiaries in the US, Europe and Asia. The principal production sites are in Israel and China.

Semiconductor solutions account for 75% of revenue, with PCB making up the rest. However, Camtek wants to become a pure-play semiconductor business – concentrating on inspection and measurement, particularly in the advanced packaging space – and it was this strategic decision that led to the sale of the PCB division.

Camtek posted revenue of $109.5 million in the 2016 financial year, up from $99.3 million in 2015. Over the same period, the company swung from a net loss of $10.1 million to a net profit of $4.7 million.

"What we look for in every investment is a talented management team in a well-positioned business, where we can help accelerate growth. That is exactly what we have found at Camtek’s PCB business, a market leader with strong technology and great customer reputation,” Lin-Lin Zhou, CEO of Principle, said in a statement.

Principle was founded in 2002 by Zhou, formerly of Fosun Capital and McKinsey & Company, and Zhong-Ren Jing, who previously worked at the American Institute of Research. It has a strategic partnership with Clayton, Dubilier & Rice, with a view to bringing some of the US-based GP’s operational expertise to investments in China.

Principle raised around RMB4 billion ($608 million) for renminbi-denominated funds before launching its debut US dollar vehicle. The International Finance Corporation said in early 2016 that it was considering a $30 million commitment to the fund, which had an overall target of $350 million. Principle’s existing portfolio demonstrates an interest in healthcare, environmental services and high-tech manufacturing.

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• Topics
• Greater China
• MENA
• Technology
• Buyouts
• China
• Principle Capital