Investcorp completes debut China control deal
Investcorp has acquired a controlling stake in China’s Shandong Jianuo Electronics, a components supplier for the electric vehicle (EV) and renewable energy industries, for an undisclosed sum.
It marks Investcorp’s first control buyout in China. The Bahrain-based firm, one of the largest alternatives investors in the Middle East, maintains an office in Beijing and has made a feature of its strategy to exploit themes around Greater Bay Area (GBA) development and China’s post-pandemic recovery.
Investcorp’s debut investment in the country came in 2018 with a USD 150m LP commitment to China Everbright’s New Economy Fund, which had raised at least USD 600m to date. This is part of a broader technology-focused partnership between the two firms.
Direct deals in China include supermarket City Super and condiments maker Heritage Foods. There is also exposure via a control position in Singapore-based food company Viz Branz, which is pursuing an aggressive China expansion.
Investcorp launched a China healthcare technology platform in 2020 with investments in hospital operator Lu Daopei Medical Group, and telemedicine platform WeDoctor. This was extended the following year with participation in a growth round for software and supply chain-focused Linkedcare.
Jianuo, which operates out of Shandong province and the GBA, is positioned as a category leader in speciality premium components for cleantech applications. In addition to EVs and renewable energy stations, it is active in battery charging and 5G connectivity infrastructure with more than 400 staff and clients spanning the US, Europe and Japan
Investcorp said it will work alongside the existing founders and management with a view to transitioning the company from a family-run business to its next stage of corporate evolution.
This process will include an expansion into new markets, which is expected to be supported by domestic and international momentum in energy transition, decarbonisation, and automation.
“The shift to a low-carbon economy will create entirely new industries and value chains within the next five to 15 years, and Jianuo is right at the heart of that evolving trend,” Hazem Ben-Gacem, Co-CEO of Investcorp, said in a statement.
“This acquisition reflects our strategy of investing in innovative and growing mid-sized companies and offering investors high-quality alternative investment opportunities in future-focused industries that are key to the global energy transition efforts.”
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