Cathay Capital to acquire German auto parts supplier
Cathay Capital Private Equity, a cross-border PE firm focusing on China, Europe and the US, has agreed to acquire a majority stake in German auto-parts maker E. Winkemann from Equistone Partners Europe.
Financial terms were not disclosed. The investment was made from the Cathay Capital Sino French Midcap Fund, which closed at EUR500 million ($614 million) in 2014 and makes commitments of EUR25-75 million per transaction. Equistone Partners and company management will both retain minority stakes in the business.
Founded in 1938, E.Winkemann manufactures precision metal parts for car gearboxes, axles, and engines. Equistone acquired the company, which was previously family owned, in 2012, with participation from the management team. The company’s annual revenue reached EUR91 million in 2017 up from EUR66 million in 2012.
The E.Winkemann deal marks Cathay's second investment in a German auto parts manufacturer following the acquisition of WST Prazisionstechnik in 2016. The GP will help E.Winkemann expand into new markets, particularly in Asia, as well as to develop new products and technologies, according to a statement.
Founded in 2006, Cathay focuses on cross-border middle-market investments through a number of PE and VC funds. It has completed 72 investments to date and claims about EUR1.5 billion in assets under management.
The firm announced last month that it was raising a successor fund, Sino French Midcap Fund II, with a target of $1.2 billion. Anchored by China Development Bank and Bpifrance, an investment firm backed by the French government, the new vehicle is expected to hold a first close by June 2018. The fund mainly invests in China and France, with small allocations to Europe and the US.
The E.Winkemann transaction is subject to various regulatory approvals.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.