Affinity Equity Partners, Unitas Capital exit Chinese drive manufacturer
Affinity Equity Partners and Unitas Capital have exited Leader & Harvest Technologies Holdings, a Chinese manufacturer of medium voltage drives, through a $650 million sale to Schneider Electric. The private equity firms are leaving with a 3x return on their initial investment of $200 million, made in late 2009.
The transaction was managed as a dual-track sale and IPO process, with Deutsche Bank serving as coordinator.
It was thought that ABB joined Schneider in the second round of bidding for Leader & Harvest. The Chinese company was a popular target, given that its focus on energy-saving devices is very much in line with government policy.
Schneider said in a statement released Thursday that Leander & Harvest has recorded annual growth in excess of 20% in recent years and was on course to reach $150 million in sales for 2011.
The Beijing-based company produces drives used in energy-intensive industries such as power generation, mining, oil and gas and water treatment. The drives can deliver energy savings of up to 50% for industrial motors yet they only feature in about 30% of the medium-voltage motors globally. China produces around 40% of the world's medium-voltage drives.
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