EQT buys stake in Chinese wallpaper brand
EQT has acquired a 40% stake in Shanghai Artwall Environmental Technology, a Chinese wallpaper manufacturer, from the company’s founders for an undisclosed sum. Red Star Macalline, a domestic home furnishings retailer, also participated as a minority investor.
The PE firm participated through its Asia mid-market fund, which closed at $800 million earlier this year and targets deployments in the EUR40-100 million ($47-119 million) range. Artwall’s existing management team, led by founding CEO and chairman Ling Li, will continue to lead the company.
Founded in 2005, Artwall manufactures a range of wallpaper, murals, wall clothes, and curtains, distributing its products through self-branded retail stores and dealers. It is headquartered in Shanghai and has more than 500 employees, according to a statement.
EQT plans to support organic growth as well as add-on acquisitions with a view to creating a fully-integrated soft decoration solution provider with a strong national brand. Two months ago, Artwall purchased the China operations of Brewster, a leading US wallpaper brand that has been present in China for more than 20 years.
The Artwall investment is similar in nature to the EQT middle-market fund's previous commitment in China. Last August, the private equity firm took a 40% stake in China Shine, a facilities management service provider, from existing management shareholders. It is partnering with the management team on growth initiatives.
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