China Everbright to buy US testing equipment maker for $90m
China Everbright, the Hong Kong-listed investment unit of China Everbright Group, has agreed to buy BEP Group, a US-based vehicle testing equipment manufacturer, for $90 million.
According to a regulatory filing, China Everbright will acquire all shares of BEP Group and receive the company's net cash balance and working capital by January next year. The firm will be run by its existing management team.
Established in 1953, Michigan-headquartered BEP manufactures automotive testing equipment and precision-machined products. In the two years ended March 2014, the company's net income was $8.1 million, compared to $7 million for 2012 alone. The decrease was partly due to the group refocusing on high-margin businesses.
BEP is expected to capture growth opportunities in the design, testing and precision engineering services provided to the automotive and other industrial segments in China.
China Everbright manages 10 private equity, venture capital and sector-focused funds - covering infrastructure, real estate, new energy and medical and healthcare - in both renminbi and US dollars.
Last year, the Chinese fund manager teamed up with Israel-based Catalyst Equity Management to launch a $200 million private equity fund to invest in Israeli companies. The fund reached a first close of $100 million in February.
The BEP transaction is expected to close before the end of January 2015.
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