CLSA Capital Partners backs Chinese spandex producer
CLSA Capital Partners has purchased a minority stake in Artex Fiber, one of China’s largest spandex producers. The RMB250 million ($39.5 million) investment was made through ARIA Investment Partners III, a $333 million vehicle that focuses on growth and expansion capital deals.
Artex Fiber was founded by Dai Yefei, formerly the chief distributor in China for Bayer AG's Dorlastan spandex brand. The specialty fiber, known for its elasticity, has a variety of consumer, lifestyle and industrial applications. Artex has an annual production capacity of 20,000 metric tons and serves over 300 industrial customers located in China and abroad.
The company first received equity financing from Itochu Corporation in 2008, but CLSA Capital Partners is the only participant in this latest round of funding. The private equity firm will help Artex expand its product portfolio, boost R&D capabilities and develop its presence in international markets.
"We foresee sustained demand in specialty fiber as China's consumption and lifestyle choices grow in both volume and sophistication. Spandex is used in everyday applications, ranging from intimate apparel, sports and casual wear, swimsuits, jeans, diapers to home furnishing, medical and industrial attire. On a per capita basis, China's use of spandex is not even half that of the U.S. and Europe," Miranda Tang, managing director and head of ARIA funds, said in a statement.
CLSA Capital Partners has $2.7 billion in assets under management through a collection of funds targeting real estate, Japanese mid-market buyouts, cleantech, mezzanine and transport.
The most recent deal involving ARIA Investment Partners III came in October of last year, with the purchase of a minority stake in Indian education specialist Resonance Eduventures for $2.8 million.
Earlier in 2011, the fund invested in Indonesian auto financing firm PT Sinar Mitra Sepadan Finance and Hong Kong casual clothing company 2% Limited.
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