EQT sells Chinese bakery chain to Swire Foods

The transaction size was not disclosed. EQT invested in the business four years ago via its second Greater China fund, which reached a final close of $545 million in late 2006. During the ownership period, the private equity firm claims to have strengthened corporate governance, helped expand Qinyuan Bakery's footprint, upgraded store format with onsite baking, and boost corporate sales.

The company was established in 1989 and currently has a network of 460 stores, in Chongqing, Guizhou and Sichuan. Its staff of more than 3,000 serves produces and serves pastries, cakes, cookies, beverages, mooncakes and rice dumplings. Sales came to $74 million in 2013, with EBITDA reaching $14 million.

Swire Foods entered into conditional agreements to buy Qinyuan Bakers in June. The transaction was structured across two tranches: first it would acquire EQT's controlling interest and the remaining equity would follow in 2017 providing certain conditions are met.

"During EQT Greater China's ownership, Qinyuan Bakery has developed successfully its strong brand and store network in Southwest China. We are grateful for the founders', Chongmei Liu and Zexiang Chen, leadership and are convinced that Qinyuan Bakery will continue to develop well," said Martin Mok, a partner at EQT, in a statement.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Exits
• Greater China
• Consumer
• EQT Partners
• Exit
• Trade sale
• China
• Consumer