MSPE Asia invests $300m in China’s Tianhe Chemicals
Morgan Stanley Private Equity Asia (MSPE Asia) has invested $300 million in China’s Tianhe Chemicals Group and created a strategic partnership with the specialty chemicals company in order to aid its expansion overseas. It is the largest single investment made by the private equity unit, which has been active in the region for nearly two decades.
Tianhe is China's largest manufacturer of lubricant oil additives that perform functions including friction reduction, cleansing and heat dissipation in motor oil and other lubricants. It also supplies specialist fluorochemicals - commonly used in waterproofing and solvents - to customers around the world. Established in Jinzhou, Liaoning province, in 1992, the company has three manufacturing bases and a staff of more than 1,200.
"We are pleased to forge this strategic partnership with one of Asia's leading private equity investors," said Xuan Wei, CEO of Tianhe. "MSPE Asia brings deep experience adding value to companies in China, coupled with industrials expertise and global resources, and we look forward to working together to expand our global market reach and increase cooperation with overseas partners."
Homer Sun, MSPE Asia's chief investment officer, added that the private equity firm will work closely with Tianhe management to support the company's development from a domestic leader into a major global player in specialty chemicals. Sun will join Tianhe's board.
The investment takes MSPE Asia's total spending in the region to around $2.4 billion. Recent transactions include the purchase of a majority stake in Korean restaurant chain Nolboo, a $50 million commitment to Chinese nutrients producer Yongye International, and the acquisition of a minority interest in China XD Plastics for $100 million.
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