Jade Invest acquires China's Guardian Hygiene

Guardian said it would leverage the investment to accelerate its M&A program, noting that the nascent and fragmented pest control services market in China is set to quadruple over the next decade. Growth is expected to be driven by direct support from Jade Invest as well as macro themes such as urbanization, stricter regulations, and increased health and food safety awareness across mainland China.

"In light of the plethora of small pest control firms, industry consolidation is inevitable, and we believe that Guardian is in a strong position to become the market leader,” Ludvig Nilsson, co-founder and managing partner at Jade Invest, said in a statement. “It not only has the competitive advantage of being local and nimble, it's also led by a highly competent and process-driven management team. With an expanded capital base, we believe the company has great potential to become a leading industry consolidator.”

Founded in 2011, Guardian claims to be among the top three pest control companies locally, with an operating model that aims to bring international standards for quality and efficiency to the mainland Chinese market. In addition to pest control, services include air optimization, workplace disinfection, and restroom hygiene. Clients include Starbucks, Carrefour, McDonald's, 7-Eleven and Hyatt hotels.

Jade Invest was established in 2005 as a fund-of-funds focused on growth capital and pre-IPO opportunities in China. The firm has transitioned into a GP in recent years, noting a lack of qualified mid-market buyout firms in China as the country’s economic slowdown has increased liquidity and performance risks associated with minority investments. It transacted its first buyout in 2015 by partnering with local and international investors to acquire health food player Yanzhifang.  

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

• Topics
• Greater China
• Consumer
• Support services
• Buyouts
• China