Mandarin Capital exits Italian chemical maker to Ardian

The transaction size was undisclosed. Mandarin Capital acquired a majority stake in Italmatch with PE firm Investindustrial for EUR100 million in 2010.

Through this exit, the IRR for Mandarin Capital's debut fund - MCP I - has surpassed 40%. The Sino-European PE firm said it will have returned 108% of the money drawn down from Fund I to investors.

Sales of Italmatch were EUR90 million, with EBITDA of EUR18 million, in 2010 when Mandarin Capital invested. The GP has helped the company obtain a license for a new plant in China and completed two acquisitions in Europe. Sales are expected to reach EUR250 million in 2014, with EBITDA exceeding EUR30 million.

"This transaction confirms the strategy of Mandarin Capital Partners to invest in strong European companies and to help them grow internationally," the PE firm said in a statement. "This strategy will be continued in MCP II."

The second fund, MCP II, is targeting a second close of EUR200 million between July and August. The overall target is EUR400 million.

The GP has switched fundraising efforts from China to the US as raising capital in China has become more difficult. It has also shifted strategy and will no longer to invest in Chinese companies seeking to expand overseas. Rather, Mandarin Capital will focus on supporting international firms, particularly those from Europe, that want to establish a foothold in China.

MCP II made its first investment earlier this week, acquiring control of Milan-based Industrie Chimiche Forestali, which develops adhesives and special textiles for the footwear industry.

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• Topics
• Greater China
• Exits
• Secondaries
• China
• Europe
• Mandarin Capital Partners
• Exit
• Secondaries
• Ardian
• manufacturing