Mandarin, Hony to support Zoomlion spin-off
Mandarin Capital Partners will team up with Hony Capital to finance the spin-off of Chinese construction equipment manufacturer Zoomlion's sanitation machinery business. It is one of two deals - together worth around EUR100 million ($125 million) - that the Sino-European GP expects to close later this year, a source familiar with the situation told AVCJ.
The news comes after Mandarin revealed last week that it is nearing a EUR500 million first close for its second fund, which is expected to reach a final close of EUR1 billion in the second half of 2013. Both investments will be channeled through this vehicle.
The GP's maiden fund closed in December 2007 at EUR327.75 million. China Development Bank, the Export-Import Bank of China and Italy's Sanpaolo IMI are among the investors.
Zoomlion has been a Hony portfolio company since 2006. Mandarin's ties with Zoomlion date back to 2008 when it supported the company's acquisition of Italy's Compagnia Italiana Forme Acciaio (CIFA), working in partnership with Goldman Sachs.
In February, Zoomlion announced that it would invest RMB2.1 billion ($333 million) to improve its environmental and sanitation machinery business. As part of the strategy, it proposed setting up a wholly owned unit - Changsha Zoomlion Environmental and Sanitation Machinery - encompassing waste treatment machinery and other environmental protection equipment.
Mandarin's second deal involves a large Chinese fashion company. It follows the private equity firm's EUR40 million commitment to Miroglio, the second-largest women textile group in Italy, last year.
"Mandarin Capital and Miroglio will jointly invest in Chinese fashion companies to leverage their fashion infrastructure worldwide," the source explained. "But for the upcoming fashion deal, it is not co-investing with anyone."
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